India Used Car Market To Generate $99,707 Million Revenue by 2030

The Indian used car market size will advance at a CAGR of 17.5% during 2021–2030, to reach $99,707 million by 2030.

The growing consumer focus on high-quality, reasonably priced vehicles and the rising preference for imported cars are the key factors driving the market for used cars. Additionally, the improved quality of old cars following thorough servicing by the dealers is changing consumers' perceptions of how long they will last.

Growing Demand for Used Luxury Cars

Used luxury cars have a large market potential in India. However, their penetration in the country is low, but leading luxury car manufacturers and luxury used car dealers are expanding their operations. For instance, Big Boy Toyz Pvt Ltd. offers used cars from the majority of the luxury and premium OEMs, such as Jaguar and Land Rover by Tata Motors Limited, Mercedes-Benz by Daimler AG, Lexus by Toyota Motor Company, BMW AG, and Cadillac by General Motors.

In addition, the average holding period for luxury cars is less than for economy models, which increases the supply of pre-owned luxury cars. Moreover, these automobiles enter the market through organized channels, such as OEM dealerships and established online marketplaces and dealers. Additionally, the high depreciation of luxury cars, which is 20%–30%, makes them an attractive purchase. Therefore, the increasing availability of luxury cars at competitive prices, coupled with the entry of organized players in the market, is further expected to drive the market growth.

Maharashtra Held Largest Market Share in 2021

Maharashtra is the largest market for used cars in India, holding 15.1% share in 2021. The major factors propelling the growth of the market in the state are the lower prices and easily availability of used cars, coupled with the favorable operating conditions and high growth opportunities for dealers.

The used car market in Delhi is expected to witness the fastest growth, at a CAGR of 19.8%, during the forecast period. This will be due to the fact that the average ownership period for new cars has decreased from seven to four years in recent years in the country, with the lowest being in Delhi. In addition, Delhi is the cheapest market for old vehicles. Since the used car market in the state is so large, there is fierce competition. As a result, retailers often lower the costs of old models, perform minor repairs, such as denting and painting, and then resell them with a healthy profit margin.

The most-significant Indian used car market players are Cars24 Services Private Ltd., OLX Group, Big Boy Toyz Pvt. Ltd., CarDekho.com, Truebil, Droom Technologies Pvt. Ltd., Maruti Suzuki India Limited, Mahindra & Mahindra Limited, Quikr India Private Limited, and Honda Motor Co. Ltd.