TL;DR
India's pre-owned car market is set to reach 9.5 million units by 2030, driven by premiumization, SUV demand, and growing trust in organized dealers.
India's pre-owned car market is on a trajectory of robust growth, with projections indicating it will reach 9.5 million units by 2030. This forecast, outlined in the 7th edition of the Indian Blue Book (IBB) report, developed by car&bike by Mahindra First Choice and Volkswagen Pre-owned Certified, highlights a Compound Annual Growth Rate (CAGR) of 10% from its current 5.9 million units in FY24-25.
The report underscores several key trends driving this expansion, including a noticeable shift towards premiumization and market consolidation. SUVs and compact SUVs have emerged as dominant segments, now accounting for over 50% of the used car market, a significant increase from just 23% four years ago. Average selling prices have also seen a sharp rise of 36% over the past four years, reflecting increasing consumer willingness to invest in higher-quality pre-owned vehicles.
Furthermore, non-metro buyers are playing a crucial role in this growth, identified as the fastest-growing demographic with 68% likely to repurchase a used car. The report also notes a rising trend in consumer loyalty, with 42% expressing intent to buy the same brand again, and a strong preference for organized dealers, who are perceived to offer superior service, vehicle quality, and justified premiums for peace of mind.
