TL;DR
India's used car market is expected to reach 9.5 million units by 2030, driven by a surging demand for SUVs and a growing preference for premium, quality-checked vehicles.
India's pre-owned car market is on a robust growth trajectory, projected to nearly double from 5.9 million units in FY25 to 9.5 million units by 2030, growing at a Compound Annual Growth Rate (CAGR) of 10%. This significant expansion is highlighted in the latest Indian Blue Book report, a collaborative effort by Mahindra First Choice and Volkswagen Pre-owned Certified. The report identifies a strong shift towards premiumization and consolidation within the market.
SUVs and compact SUVs are now dominant, capturing over 50% of the used car market, a substantial increase from just 23% four years ago. This trend has also led to a sharp rise in average selling prices, up by 36% over the past four years, as buyers increasingly upgrade to newer, safer, and higher-quality pre-owned models. Non-metro buyers are emerging as a key growth segment, with 68% expressing a likelihood to purchase a used car again, signaling vast opportunities for organized players to expand their reach beyond major cities.
