India Second Hand Car Market Research Report: Forecast (2025-2030)
India Second Hand Car Market Report - By Vehicle Type (Hatchbacks, Sedans, SUVs), By Propulsion Type (ICE, [Petrol, Diesel, Others (CNG, LPG, etc.)], Electric), By Sales channel (O...nline, Offline), and Others Read more
- Automotive
- Oct 2024
- 105
- PDF, Excel, PPT
Market Definition
Second-hand cars are typically those that have been used by one or many different owners. These cars are popular in the market as people are looking for ways to purchase low-priced or used vehicles and those that offer significant discounts according to their condition. Such cars are mostly sold through private party sales, online channels, rental car companies, and different outlets.
Market Insights & Analysis: India Second Hand Car Market (2025-2030):
India Second Hand Car Market size is valued at around USD 35.1 billion in 2024 and is anticipated to reach around USD 68.32 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 14.87% during the forecast period, i.e., 2025-30. This growth trajectory is fueled by various factors such as technological advancements in the buying and selling process like new online channels, increased consumer preference for affordable mobility solutions, and sales of guarantee vehicles to franchises, car dealers, and leasing stations.
Report Coverage | Details |
---|---|
Historical Years | 2020-23 |
Base Years
|
2024
|
Forecast Years
|
2025-30
|
Market Value in 2024 | USD 35.1 Billion |
Market Value in 2030 | USD 68.32 billion |
CAGR (2025-30) | 14.87% |
Leading Country | North India |
Top Key Players | Cars24 Services Private Limited, Maruti Suzuki True Value (Maruti Suzuki India Limited), Mahindra First Choice Wheels Limited, Hyundai Motor India, Honda Cars India Limited, Ford Assured (Ford Motor Company), Toyota U Trust, Big Boy Toyz, BMW AG, Audi Approved Plus, CarTrade Tech Limited, Droom Technology Pvt Ltd. and others |
Key Report Highlights |
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One of the most significant factors behind the rise of the industry is the growth of the internet where one can now easily compare and find out the information of used cars. Many used car dealers have established websites to publish information regarding used cars and their availability. India is the largest market for second-hand luxury car deals in the world but with a sluggish rise, however, luxury used car dealers have already entered the Indian Market and expanding their operations.
Moreover, various challenges in the market affect the business and need to be addressed for sustainable growth and development. Some of them may include quality and condition assurance of used cars which is one of the major challenges that concern buyers in cases of hidden defects, regulation, and compliance issues in documentation & legal ownership transfers, and adherence to local regulations pose multiple challenges. The other major challenge that the customer has to face is financing options for used cars which are very limited and a bit costly as compared to new car financing. Thus, for smooth growth & expansion of the second-hand car industry, these issues should be carefully considered by all stakeholders.
India Second Hand Car Market Driver:
Growing Demand for Used Luxury Cars – As social media impacted the minds of people, it created a trend of early success which can be shown as richness. This gave a boost to the second-hand luxury car industry in India. Betting on the potential of the Indian market, leading used car dealers like Big Boy Toyz Pvt Ltd (BBT) have increased their operations to provide used luxury vehicles to consumers. They offer the majority of luxury and premium OEMs such as Mercedes-Benz, Lexus, Cadillac, Lamborghini, Ferrari, Jaguar Land Rover, etc.
With the growing trend of early richness, the young generation goes for them. In addition, the average holding period for these luxury cars is way less than the economy models because of the frequently changing of cars and high maintenance which ultimately boost their supply. They usually enter the market from organized channels such as dealers, online marketplaces, and OEM dealerships. Additionally, they ultimately become an attractive purchase for the buyers with all the attractive features offered at a high depreciation of around 20%-30%. Therefore, the increasing supply at competitive prices together with the entry of organized players in the market is expected to drive the market growth.
India Second Hand Car Market Opportunity:
Emerging Market in Tier II/Tier III Cities – With rapid urbanization in the Tier II and Tier III cities in India, there has been an increased demand for personal modes of transport which offers high growth potential for the second-hand car industry. To tap into this expanding market and capture the growing customer base, the operations need to be expanded in the form of local dealerships, more online channels, and service centers to cater to the needs of the customers. The opportunity can also be grabbed by developing unique strategies to cater preferences of customers from specific regions, providing services like customization based on regional needs. Thus, increasing demand from tier II and tier III cities is providing ample growth opportunities for the top companies operating in the second-hand car industry in the country.
India Second Hand Car Market Challenge:
Stringent Government Regulations – Multiple regulations imposed by the government are a major challenge to the growth of the business. Although they can be managed, if not addressed properly they can create adverse effects on the size & volume of the market and drastically affect the profitability of the market players. The linkage of pollution with used vehicles is a major concern for the growth & development of the second-hand car industry. According to market research, there is a high emission rate from used cars as compared to the new cars with better & advanced technology. This led to the formation of stringent policies like petrol cars older than 15 years becoming obsolete and not allowed to drive and in the case of diesel it's even lesser up to 10 years creating a setback for the used car market. Moreover, the BS-6 norms have doubled the car depreciation rate in India not only directly impacting the used car market but also adversely affecting the mindset of the buyers.
India Second Hand Car Market Trend:
Growth of Digital Platforms Changing Market Dynamics – The Indian Market is witnessing a trend of online retailing and the growth of online platforms for the sales and purchase of used cars. The access to the internet, urbanization, and expansion of the telecom industry have contributed to an improved flow of knowledge amongst customers making it easier to use these online channels and gain appropriate information regarding the vehicle of their need. Used car owners use these websites to share their car's information and availability resulting in faster transactions helping both buyer and seller to complete major paperwork online. With the growth of more digital platforms businesses are also getting opportunities to expand online listing the products on the websites making it easier for consumers to compare and choose. The convenience of online car-buying and selling, including features like virtual inspections, instant pricing, and user-friendly interfaces, is becoming increasingly popular among consumers ultimately boosting market size & volume.
India Second Hand Car Market (2025-2030): Segmentation Analysis
The India Second Hand Car Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:
By Vehicle Type
- Hatchbacks
- Sedans
- SUVs
The hatchback segment holds the largest market share. This segment constitutes nearly 50% of the whole Indian Second Hand Car Industry. This specific type of vehicle is mostly preferred by prospective customers because of its compact size, affordability, fuel efficiency, availability, and compactness. All these features of hatchbacks make them an ideal compact product for urban areas. This segment is going to rule even during the forecast period of 2025-2030, which is expected to grow at a CAGR of around 10%-12%. Urbanization's continuing preference for budget-friendly vehicles and increasing middle-class income are contributing to the segmental revenue growth and ultimately augmenting the overall size & volume of the second-hand car industry.
By Sales Channel
- Online
- Offline
The online sales channel is anticipated to register the largest revenue growth during the forecast period as it has uncharted potential. Overall market revenue through this sales channel is around 25%-30% of total market value in 2023 and it is predicted to surge at a CAGR of around 18% to 20% in the coming years. The current valuation of the segment is around USD 12 billion in the year 2023, and it is still to expand with a strong base from the rising internet penetration, digitization, improvement in technology, and ease of access to information and research with the help of online modes. Furthermore, a substantial amount of customers, specifically the older generation, still like the traditional offline method of shopping which, to them, entails physically inspecting the vehicle and discussing price directly with the sellers. However, the continuous government efforts towards financial literacy & financial inclusion are anticipated to create good opportunities for the online sales channel in the coming years.
India Second Hand Car Market (2025-30): Regional Projections
Geographically, India Second Hand Car Market expands across:
- North
- East
- West
- South
The major part of the second-hand industry is in North India with a share of approximately 30% which is the whole of the Indian market. Among them are the major states like Delhi, Haryana, Punjab, Uttar Pradesh, and Himachal Pradesh. Regarding total market value, the north Indian second-hand car market is valued at around USD 9 billion in 2023. The main causes of the surge in the Indian North Market are rapid urbanization, population growth, and a rise in car ownership. As per market research, it is projected that the second-hand car industry in this region will grow at a CAGR of around 10%-12% in the coming years.
India Second Hand Car Industry Recent Development:
- August 2024: Cars24 Services Private Limited introduced a new function for their application called "Cars24 AI Inspection" which uses artificial intelligence to assess used card conditions to decrease human error and produce more accurate appraisals.
- July 2024: Mahindra First Choice Wheels Limited focused on both urban and semi-urban areas to develop its client base by expanding its network of pre-owned car stores across India by 50%.
Gain a Competitive Edge with Our India Second Hand Car Market Report
- India Second Hand Car Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of market dynamics & make informed decisions.
- This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
- The India Second Hand Car Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.
*Reports Delivery Format - Market research studies from MarkNtel Advisors are offered in PDF, Excel and PowerPoint formats. Within 24 hours of the payment being successfully received, the report will be sent to your email address.
Frequently Asked Questions
- Market Segmentation
- Introduction
- Product Definition
- Research Process
- Assumptions
- Executive Summary
- India Second Hand Car Market Trends & Insights
- India Second Hand Car Market Dynamics
- Growth Drivers
- Challenges
- India Second Hand Car Market Hotspot & Opportunities
- India Second Hand Car Market Policies, Regulations, & Product Standards
- India Second Hand Car Market Supply Chain Analysis
- India Second Hand Car Market Analysis, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- By Units Sold (Thousand)
- Market Share & Analysis
- By Vehicle Type
- Hatchbacks -Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Sedans-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- SUVs-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Propulsion Type
- ICE-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Petrol-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Diesel-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Others (CNG, LPG, etc.) -Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Electric-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- ICE-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Sales channel
- Online-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Offline-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Region
- North
- East
- West
- South
- By Competitors
- Competition Characteristics
- Market Shares & Analysis
- By Vehicle Type
- Market Size & Analysis
- India Second Hand Hatchbacks Market Analysis, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- By Units Sold (Thousand)
- Market Share & Analysis
- By Propulsion Type-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Sales Channel-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Region-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Market Size & Analysis
- India Second Hand Sedans Market Analysis, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- By Units Sold (Thousand)
- Market Share & Analysis
- By Propulsion Type-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Sales Channel-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Region-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Market Size & Analysis
- India Second Hand SUVs Market Analysis, 2020-2030F
- Market Size & Analysis
- By Revenues (USD Million)
- By Units Sold (Thousand)
- Market Share & Analysis
- By Propulsion Type-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Sales Channel-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- By Region-Market Size & Forecast 2020-2030F, Units Sold (Thousand)
- Market Size & Analysis
- India Second Hand Car Market Key Strategic Imperatives for Success & Growth
- Competition Outlook
- Company Profiles
- Cars24 Services Private Limited
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Maruti Suzuki True Value (Maruti Suzuki India Limited)
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Mahindra First Choice Wheels Limited
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Hyundai Motor India
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Honda Cars India Limited
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Ford Assured (Ford Motor Company)
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Toyota U Trust
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Big Boy Toyz
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- BMW AG
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Audi Approved Plus
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- CarTrade Tech Limited
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Droom Technology Pvt Ltd.
- Business Description
- Product Portfolio
- Strategic Alliances or Partnerships
- Recent Developments
- Financial Details
- Others
- Others
- Cars24 Services Private Limited
- Company Profiles
- Disclaimer