Used Car Market in India Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Used Car Market in India is Segmented by Vehicle Type (Hatchbacks, Sedans, and Sports Utility Vehicles), Vendor Type (Organized and Unorganized), and Fuel Type (Petrol and Diesel). The Report Offers the Market Sizes and Forecast in Value (USD Billion) for all the Above Segments.

Used Car Market in India Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India Used Car Market Size

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India Used Car Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 36.39 Billion
Market Size (2030) USD 73.52 Billion
CAGR (2025 - 2030) 15.10 %
Market Concentration Medium

Major Players

India Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Used Car Market Analysis

The India Used Car Market size is estimated at USD 36.39 billion in 2025, and is expected to reach USD 73.52 billion by 2030, at a CAGR of 15.1% during the forecast period (2025-2030).

The COVID-19 pandemic had a minimal impact on the industry. With the increased number of people preferring individual mobility and more finance options available in the used car market, the market is set to grow considerably. Due to the pandemic's reduced cash inflow, buyers have been forced to look for alternatives to new cars, and the used car industry has high growth potential in this regard. As the pandemic has hampered new vehicle sales and production, the used car market is gaining traction among buyers.

Over the long term, the standardised dealership experience, high price experience, and high financing cost for used cars may stifle the market's growth. With the implementation of the new BS-VI emission standards by the Government of India, the technological cost of cars to meet the standards will be borne by consumers. The companies' emphasis on reducing diesel car production is expected to increase demand for compact diesel cars in the price and mileage-sensitive Indian market.

A few years ago, the new-to-used car ratio was 1:1.2, but it is now 1:2.2. When ten new cars are sold, the market has 22 used cars available for purchase. The average holding time of a new car has decreased from 5-6 years to 3 years. The used car category has provided many options for first-time buyers. In terms of buyer preferences and requirements, the trend in the used car market mirrors the trend in the new car market. Buyers in the used car segment, on the other hand, are more likely to try out new brands. This is not the case with new vehicles.

  • Maruti Suzuki, on the other hand, has long been the top choice for used car buyers and has a majority market share in the new car market.
  • Moreover, Only 17% of the market is accounted for by the organised sector. Today, the majority of car purchases and sales are conducted informally.

Although India has seen tremendous growth in the used car market, there is still room for future growth through the organised sector, as the ratio of new cars to used cars in mature markets such as the United States and Europe is 1:3. Overall, the Indian used car market appears to be on the right track.

  • In June 2022, Porsche has made an official announcement that it will launch a used-car business in India on June 8, 2022, under its new sub-division, Porsche Approved. This new business will be launched at the Porsche Centre Kochi in Kerala.

Meanwhile, other German luxury automakers such as Audi, BMW, and Mercedes-Benz already have pre-owned car operations in the country.

However, lack of standardization and awarness among customer may hamper the market growth duirng the forecast period.

Based on Aforementioned Points the target market is expected to grow with a significant rate in the upcoming time-period.

India Used Car Industry Overview

Due to their business models and increased number of pre-owned car retail outlets, significant players hold the largest market share in India's used car market. OLX, Mahindra First Choice Wheels, CARS24, Maruti True Value, and Hyundai H Promise are among the major players. To maintain their market position, these companies are pursuing a variety of growth strategies. For instance,

  • In August 2021, Audi India announced its plan to expand Audi Approved Plus showrooms from 7 to 14 by the end of 2021, which will back up pre-owned sales, along with the 40-plus workshops countrywide

India Used Car Market Leaders

  1. Cars24

  2. Maruti True Value

  3. Mahindra First Choice Wheels

  4. OLX

  5. Hyundai H Promise

  6. *Disclaimer: Major Players sorted in no particular order
India Used Car Market Concentration
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India Used Car Market News

  • In August 2022, Lexus, which is owned by Toyota, has launched its Lexus Certified Programme in the Indian market. Lexus India hopes that by launching this initiative, existing Lexus vehicle owners will be able to get a higher resale value for their vehicles, while also making Lexus models more accessible and affordable to new customers.
  • In August 2021, Mahindra First Choice Wheels (MFCW) and CamCom, an AI-powered visual inspection solutions company, partnered to offer the ability to inspect cars using AI. With this partnership, Mahindra can inspect and make damage assessments for vehicles.
  • In August 2021, Mercedes-Benz India announced the introduction of a 'direct customer to customer' selling platform called 'Marketplace' to provide buyers and sellers of luxury, pre-owned cars with multiple benefits.

India Used Car Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
  • 4.2 Market Restraints
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size in USD Billion)

  • 5.1 By Vehicle Type
    • 5.1.1 Hatchbacks
    • 5.1.2 Sedans
    • 5.1.3 Sports Utility Vehicles (SUV)
  • 5.2 By Vendor Type
    • 5.2.1 Organized
    • 5.2.2 Unorganized
  • 5.3 By Fuel Type
    • 5.3.1 Petrol
    • 5.3.2 Diesel

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 CARS24
    • 6.2.2 Maruti True Value
    • 6.2.3 Mahindra First Choice Wheels
    • 6.2.4 Hyundai H Promise
    • 6.2.5 Honda Auto Terrace
    • 6.2.6 Ford Assured
    • 6.2.7 Toyota U Trust
    • 6.2.8 Big Boy Toyz
    • 6.2.9 BMW Premium Selection
    • 6.2.10 Audi Approved Plus
    • 6.2.11 Mercedes-Benz Certified
    • 6.2.12 Car Trade
    • 6.2.13 OLX
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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India Used Car Industry Segmentation

A used car, also known as a pre-owned vehicle or a secondhand car, is one that has previously been owned by one or more retail owners.

India's Used Car Market is segmented into Vehicle Type, Vendor Type, and Fuel Type. By Vehicle Type, the market is segmented into Hatchbacks, Sedans, and Sports Utility Vehicles. By vendor type, the market is segmented into Organized and Unorganized. By Fuel Type, the market is segmented into Petrol and Diesel.

By Vehicle Type Hatchbacks
Sedans
Sports Utility Vehicles (SUV)
By Vendor Type Organized
Unorganized
By Fuel Type Petrol
Diesel
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India Used Car Market Research FAQs

How big is the India Used Car Market?

The India Used Car Market size is expected to reach USD 36.39 billion in 2025 and grow at a CAGR of 15.10% to reach USD 73.52 billion by 2030.

What is the current India Used Car Market size?

In 2025, the India Used Car Market size is expected to reach USD 36.39 billion.

Who are the key players in India Used Car Market?

Cars24, Maruti True Value, Mahindra First Choice Wheels, OLX and Hyundai H Promise are the major companies operating in the India Used Car Market.

What years does this India Used Car Market cover, and what was the market size in 2024?

In 2024, the India Used Car Market size was estimated at USD 30.90 billion. The report covers the India Used Car Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Used Car Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Used Car In India Industry Report

The used car market in India is set to observe substantial growth, bolstered by the increased focus of automakers on establishing used car networks, heightened customer preference for used cars, and expanded finance options in the used car market. Rising middle-class population and enhanced disposable income further fuel this growth. Factors like fuel type, vendor type, and vehicle type playing crucial roles in market segmentation. Hatchbacks have seen a surge in sales due to their practicality and low maintenance cost, while the organized vendor type segment dominates due to increased sales in metro cities. Statistics for the India Used Care Market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Used Care analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.