Market Overview

The Indian used car market size stood at USD 5,621.4 million in 2023, and it is expected to grow at a CAGR of 12.1% during 2024–2030, to reach USD 12,417.6 million by 2030. The most significant factor for this rise in popularity is the internet where one can find the information necessary regarding used cars.

Furthermore, sales of guarantee vehicles to franchises, car dealers, and leasing stations as well as the growing need for car subscription services are some of the factors anticipated to fuel the growth of the car rental business in the forecast period.

The web retail trade for secondhand automobiles in India is a growing trend. The Internet, urban progress, as well as the telecom extension are amongst the sources boosting the knowledge flow from customers.

Moreover, many used car dealers have developed websites that are used to advertise their products and inform the public that used cars are available. This leads to an enhanced number of people who are ready to pay for and sell cars online That makes the transaction easier and faster as both the parties can complete most of the paperwork and discussion through internet base.

India is a largest market in the world for second hand luxury car deal. But the rise of them is sluggish, however the leading luxury car manufacturers and luxury used car dealers in India have already entered the market and are already expanding their operations, seeing the potential of the market. For a case in point, the company Big Boy Toyz Pvt Ltd. (BBT) is a dealership for high-end luxury, exotic and import cars in India.

Key Insights

• In 2023, unorganized businesses had a leading 70% industry share in India for the used car industry.
• The mainstream of transactions in the used car industry was done by individuals without organizational backing, directing to trust issues.
• In India, Maruti Suzuki India Ltd. (Maruti True Value) and Mahindra & Mahindra Ltd. (Mahindra First Choice Wheels) were the first OEMs to enter the used car market, to provide reliability and trust to the dealers.
• In comparison with unstructured companies, these organized teams would experience a great deal of growth at the rate of 12.4%, thanks to their extra services like the free towing and dealership benefits. This will shape the trust of consumers and market demand.
• In 2023, the large category had the largest revenue share of approximately 50% in the Indian used car industry, propelled by lower prices and ample space in these vehicles, catering to huge families and group travelers.
• Besides the SUVs that are generally used in off-road activities are the ones that instigate the big category with sales of pre-owned vehicles accessible at lower prices hence gradually increasing.
• On the other side offline sales accounting for about 75% of the market remain dominated by well-known dealers where the consumers largely feel safe to buy the car because of historical trust and the ability to personally examine the vehicle.
• Maharashtra clocked in 35% of the share, primarily because it has strong depreciation values of luxury automobiles, a young population increasing gradually, increasing disposable income, more urbanization, and internet connection expanding into non-metros.
• The presence of the capital in Delhi is presumed to be the biggest reason for its growth as foreigners, businesses, and like-minded people move in thus boosting the demand for used cars.
• The Indian used car market is fragmented. But it has recently witnessed many organized players including Cars24, Quikr, and CarDekho setting up platforms for comparing prices, availability, and services like financing and warranties at no extra cost.

Source: P&S Intelligence