Report Overview

India Used Car Market is gaining significant traction owing to the growing preference for personal mobility, rising consumer interest in high-quality vehicles that are available at an affordable price along with the inclination towards de-luxe model cars...

India Used Car Market - Industry Trends & Forecast Report 2028

India Used Car Market was worth USD 29.8 billion in 2021 and is further projected to reach USD 65.1 billion by the year 2028, growing at a CAGR of 11.8% during the forecast period (2022-2028). The market is growing at a high rate owing to factors such as urbanization, changing living standards, and rising demand for pre-owned cars. Also, the growing entry of automotive start-ups with new and innovative business models propels the market growth. Moreover, continuously increasing new car prices along with the young generation's interest in luxury cars is surging the demand for luxury used cars. This is further fueling the growth of the India Used Car Market during the forecast period (2022-2028).

Used Car - Overview

A Used car is type of vehicle that has been previously owned. It is also known as a second-hand car and is available at lower rate than new cars. The main advantages of used car are low depreciation rates, easy availability, smaller loan amount, reliability, quicker pay-off and low insurance rate. Used cars are available in various distribution channels such as offline and online.

India Used Car Market Forecast and Trends

Growth Drivers

Increasing Online Used Car Platforms

The expansion and availability of e-commerce platforms for second-hand cars act as a major driving factor for the growth of the India Used Car Market. Various nationwide online services like Cardekho.com, Cars24, Droom, etc. offer a wide range of choices with just a click of a button. Also, online platforms allow the consumer to list the exact specification that they are looking for. Moreover, the consumer can find a variety of cars in good condition and at a fair price by comparing them against another similar model. Additionally, it provides test-drive services and the zero-down payment.  And all online used car platforms save time and money as well as help shop on your terms by sitting at home.

Growing Automotive Startups and Entry of Legacy Players

The number of automotive startups is rapidly increasing in India. These automotive startups offer attractive deals to used car buyers with easy financing options. Also, it provides other benefits such as a free warranty period, certified vehicles, etc. Moreover, the entry of various legacy players in the used car segment is fueling the interest of consumers. The auto manufacturing companies such as Mahindra, Suzuki, Toyota, Tata Motors, Hyundai, etc. have their own dedicated pre-owned car sales channel. As well as entry of luxury car manufacturers like Mercedes-Benz, and Audi is also attracting consumers for buying used luxury cars.

Restraints

Increasing Cost of Used Car

In India, the production of cars is declining due to the global shortage of semiconductor chips that are used in cars, trucks, and SUVs. Thus, new car prices are rising continuously in the country. Therefore, a lack of new cars right now inevitably means a lack of near-new used car stock for upcoming years. Also, shortage of 1–3-year-old-cars for the next few years. There is high demand for used cars across the country. These factors like high demand for used cars and low stock are increasing the prices of used cars at another level. All these factors hinder the growth of the India Used Car Market.

Impact of COVID-19 on India Used Car Market

The sudden outbreak of COVID-19 both positively and negatively impacted the growth of India Used Car Market. The nationwide lockdown imposed by the government restricted the manufacturing and supply of raw materials. This results in a huge loss in the production of the automotive industry. However, people avoided public transport due to the risk of infection and social distancing norms during the pandemic. Moreover, the majority of people are planning to buy cars post lockdown. Additionally, COVID-19 affected the production of the automotive industry which led to an increase in the new car prices. Thus, people are shifting their preferences toward used cars due decline in disposable income as well as the need for buying cars. All these factors are expected to drive the growth of the India Used Car Market during the forecast period (2022-2028).

India Used Car Market - By Vehicle Type

Based on vehicle type, India Used Car Market is segmented into Hatchback, Sedan, SUV, and Others. The SUV segment accounts for the largest market share and is mostly in higher demand among young consumers. Since the SUVs has an aesthetic interior that makes passenger feel more comfortable while traveling. Also, the versatility, off-road capabilities, and suitability of SUVs for Indian roads are fueling their demand. This results in propelling the growth of the India Used Car Market during the forecast period (2022-2028).

India Used Car Market - By Fuel Type

Based on fuel type, India Used Car Market is segmented into Petrol, Diesel, and Others. The petrol segment accounts for the largest market share owing to the majority of all petrol vehicles sold in India. This is because petrol engines offer better initial acceleration. Also, the cost of maintenance of petrol cars is lower than in diesel cars.

India Used Car Market - Regional Insights

Geographically, the India Used Car Market is segmented into North India, South India, East India, and West India. The West India region dominates the market owing to the most economically populated state of Maharashtra. Also, the strong depreciation value of luxury cars, urbanization, increasing internet penetration in non-metros, and wide availability of used cars in the state. This results in offering lucrative growth opportunities for the India Used Car Market during the forecast period (2022-2028). 

Competitive Landscape

The leading market players in the India Used Car Market are CARS24, Maruti True Value, Mahindra First Choice Wheels, Hyundai H PromiseFord Assured, Toyota U Trust, Big Boy Toyz, BMW Premium Selection, Audi Approved Plus, Mercedes-Benz Certified, Car Trade, and other prominent players        

The market is highly competitive and fragmented with the presence of various global as well as regional industry participants. The companies constantly launch new products with advanced features to gain a competitive edge over the market. Multinational corporations also invest in expanding their production capacities to meet the growing demand and boost their market penetration. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In January 2020, Mahindra First Choice Wheels Limited invested in CarandBike.com, a popular automotive portal in India.

• In October 2019, Cars24 closed an equity financing of around USD 100 million from new and existing investors in series D funding.

Scope of the Report

By Vehicle Type

• Hatchback

• Others

• SUV

• Sedan

By Fuel Type

• Petrol

• Diesel

• Others

By Distribution Channel

• Dealership

• C2C

• Classifieds

• Others

By Category 

• Exported

• Domestic Sales

By Region

• North India

• South India

• West India

• East India