India's used car market is experiencing a remarkable transformation, overtaking new car sales for the first time in 2024. According to CARS24, approximately 5.4 million used cars were sold compared to 4.2 million new cars, reflecting a significant shift in consumer preferences towards affordability and value for money.
This trend is expected to continue, with projections indicating that the used car market will grow at a 13% compound annual growth rate (CAGR), reaching 10.8 million units by 2030. The average selling price of used cars has risen by 24%, yet remains approximately half that of new vehicles, making them an attractive option for budget-conscious buyers.
The rise in organized players in the market has enhanced consumer trust, with financing options for used cars increasing from **15% to 23%** in recent years. Notably, regions like Maharashtra and Delhi are leading this boom, driven by a growing middle class and increasing disposable incomes.
Models such as the Maruti Suzuki Swift and Hyundai Santro are particularly popular, maintaining strong resale values and appealing to a diverse range of buyers. As the gap between new and used car prices widens, more consumers are opting for pre-owned vehicles, marking a pivotal moment in India's automotive landscape. The future of car ownership in India is undoubtedly shifting gears towards the used car market.
