Indian Used Car Market Report | By Cars24 & Team-BHP

In CY24, India’s pre-owned car market outpaced new car sales with a ratio of 1.3:1.

Cars24 and Team-BHP have collaborated to publish a detailed analysis of the Indian used car market. The report delves into the changing consumer mindsets, emerging trends and the overall evolution of India’s used car market.

Link to download the full PDF

Highlights:

• Pre-Owned or New: India's Choice?
• What Drives Modern Car Buyers?
• The Buyer’s Journey: How Cars Are Researched
• Top States for Used Car Sales
• India’s Most Wanted Cars
• Cars with the Best Resale value
• Brand Leaders in the Used Car Market
• Body Types Buyers Love
• Average Selling Prices: Trends to Watch
• When Do Owners Sell Cars?
• Fuel Types: What’s Trending?
• Popular Car Colors
• Manual vs. Automatic: What India Wants
• Must-Have Features for Buyers
• Financing Trends in the Used Car Market

Pre-owned or New?

• In CY24, India’s pre-owned car market outpaced new car sales with a ratio of 1.3:1. By CY30, this ratio is projected to rise to 1.7:1, i.e For every 10 new cars purchased, 17 used cars will be bought
• Used Car Market Growth: Sales are expected to increase from 4.6 million in CY23 to 10.8 million in CY30, achieving a CAGR of 13%.
• New Car Market Growth: New car sales have also shown steady growth, with an expected increase from 4.1 million in CY23 to 6.3 million in CY30, with a CAGR of 7.3% during this period.
• Both markets are expanding significantly, but the faster growth of the pre-owned segment highlights an enduring preference for affordable and dependable mobility options.

Top States Fueling India’s Used Car Craze

• Maharashtra’s (16.4%) high GDP per capita and essential car ownership in cities like Mumbai and Pune, driven by high living costs, fuel demand for economical used vehicles.
• In Delhi (13.8%), strict environmental norms and heavy traffic make used cars an affordable and practical choice, often as secondary vehicles.
• Uttar Pradesh’s (11.7%) expanding road infrastructure, particularly around cities like Lucknow and Kanpur, boosts car ownership appeal.
• Haryana (10.7%) benefits from its proximity to Delhi-NCR and well-developed road networks in industrial hubs like Gurugram, making personal vehicles convenient.
• In Karnataka (10%), Bengaluru's tech-savvy professionals and millennials prioritize affordable, compact, and fuel-efficient used cars, further driven by trust in online platforms.

India’s Most Wanted Used Car of 2024

1. Maruti Suzuki Swift – 5.8%
2. Hyundai i10 – 4.1%
3. Honda City – 3.6%
4. Maruti Suzuki Swift Dzire – 3.5%
5. Maruti Suzuki WagonR 1.0L – 3.2%
6. Hyundai Grand i10 – 2.7%
7. Maruti Suzuki Alto – 2.5%
8. Maruti Suzuki Baleno – 2.5%
9. Hyundai Elite i20 – 2.3%
10. Hyundai i20 – 2.2%

What’s driving used car sales – Sedans, SUVs or Hatchbacks?

• Hatchbacks saw a decline in market share from 57% in 2022 to 53.4% in 2024, as buyers leaned towards larger, feature-packed vehicles to match their evolving preferences.
• Sedans experienced a slight drop in market share, from 25.3% in 2022 to 24.4% in 2024, but continued to attract those seeking an ideal mix of affordability, comfort, and style.
• Demand for SUVs surged, with their market share climbing from 12.6% in 2022 to 16.7% in 2024. Their spacious design, versatility, and premium appeal made them a favorite across both urban and rural markets.

Average selling price of used cars

• The Average Selling Price (ASP) grew from ₹449,961 in 2021 to ₹566,097 in 2024, marking a 25.8% increase over the period, driven by demand for better-equipped and premium vehicles.
• The rising ASP highlights a maturing pre-owned car market, with buyers valuing performance, safety, and tech-driven options more than ever.