India's Used Car Market Surges Past New Cars! Massive Growth Ahead?

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Updated on 13 Nov 2025, 07:31 am

The 7th edition of the Indian Blue Book, a report by car&bike by Mahindra First Choice and Volkswagen Pre-owned Certified, reveals a booming Indian pre-owned car market. In FY25, approximately 5.9 million used cars were sold, a figure higher than the 4.5-4.6 million new cars expected to be sold in the same period. This segment is forecast to grow at a Compound Annual Growth Rate (CAGR) of 10%, potentially reaching 9.5 million units by 2030. The estimated value of the used car market is around Rs 4 lakh crore. A significant trend is the shift towards premiumization, with Sports Utility Vehicles (SUVs) now accounting for over 50% of used car sales, up from 23% four years ago. Average selling prices have also seen a sharp increase of 36% over the same period.

However, the market is still predominantly unorganized, with an estimated 70% controlled by unregistered entities, roadside garages, and private sales. Despite this, organized platforms are improving trust and service, transforming the perception of used cars from a fallback option to a preferred choice. Buyers, particularly from non-metro cities (68% likely to buy used), are increasingly valuing quality, safety, and specifications, showing strong brand loyalty with 42% willing to buy the same brand again.

Impact This news highlights a significant shift in consumer preference and market dynamics within the Indian automotive sector. The rapid growth of the organized used car market presents opportunities for manufacturers with established pre-owned vehicle programs and third-party used car platforms. It may also influence new car sales strategies and aftermarket services. The increasing value and volume indicate a maturing automotive ecosystem in India, potentially impacting financing and insurance sectors as well. Rating: 7/10.