India’s Used Car Market To Double By 2030, Driven By EVs & SUVs, Says CARS24 Report

India's used car market is on a fast track, projected to grow from 4.6 million sales in 2023 to an impressive 10.8 million by 2030, with a robust compound annual growth rate (CAGR) of 13%, according to a report by auto-tech firm CARS24.

The report highlights the evolving dynamics of the used-car market, driven by shifting consumer preferences toward more affordable and reliable vehicles. Gajendra Jangid, Co-Founder of CARS24, stated, "The once niche pre-owned car market has surged ahead, redefining car ownership in India. The Gear of Growth report reflects changing consumer trends and the expanding used-car market."

One notable trend in 2024 was a significant rise in eco-conscious buyers, with electric vehicle (EV) sales increasing fivefold. Maharashtra, Karnataka, and Delhi led this transition, according to the report.

SUVs maintained their dominance in 2024, capturing 16.7% of the market share. Their spaciousness, versatility, and premium appeal made them a top choice across urban and rural areas.

The gap between the Average Selling Price (ASP) of new and used cars continues to widen. While new car ASPs have surged by 32%, used cars have seen a 24% increase, further solidifying the affordability advantage of pre-owned vehicles.

Financing trends also reflect changing consumer behavior. The share of financed new cars has grown from 60% in 2010 to 84.2% in 2024. Meanwhile, used-car financing rose from 15% to 23%, underscoring a significant growth area for financial institutions and dealerships in the pre-owned car segment.