India’s pre-owned car market continues its strong growth trajectory, reaching 5.9 million units in FY24–25 and projected to expand at a 10% CAGR to 9.5 million units by 2030, according to the 7th edition of the Indian Blue Book. The annual industry report is published by car&bike of Mahindra First Choice in partnership with Volkswagen Pre-owned Certified.
The report points to major shifts shaping the used-car landscape, including rising premiumization and consolidation. SUVs — particularly compact SUVs — are seeing strong demand, even among budget-conscious shoppers. Brand loyalty remains high with 42% of buyers willing to purchase the same brand again. Non-metro consumers are emerging as the most enthusiastic repeat buyers, signalling a major growth opportunity outside major cities.
Technology is also becoming a key driver of trust in the segment. AI-enabled platforms are gaining adoption through advanced inspections, certifications, and predictive insights. Generative AI is expected to reshape the research and buying experience, especially for digitally savvy consumers. Organised players are leading this transformation by offering structured warranties, certified vehicles, transparent processes, and seamless digital journeys.
Commenting on the findings, Mr. Mohammed Turra, MD & CEO, Mahindra First Choice, said, “The Indian used car market has come of age, fuelled by rising demand, structural mobility needs, and growing acceptance of used cars as a smart, aspirational choice. Organised players are driving trust and transparency through certified vehicles, structured warranties, accessible financing, and AI-enabled journeys, creating unprecedented opportunities for buyers and sellers alike.”
Key insights from the Indian Blue Book highlight growing maturity and confidence in the market:
• Over 70% of customers believe organised dealers offer superior service, higher vehicle quality, and justified premiums.
• Cars known for reliability and high residual value remain in demand for longer ownership cycles.
• Vehicles aged 4–7 years account for the largest share — 30% — of organised used car transactions.
• Upgrading trends are accelerating: hatchback owners are moving to compact SUVs or sedans, while compact SUV buyers are shifting to full-size SUVs.
• Non-metro regions show strong loyalty, with 68% likely to purchase a used car again.
• Warranty remains a key differentiator, valued by 66% of buyers across metros and non-metros alike.
• AI tools are currently used in only 6% of purchases, but adoption is expected to rise sharply.
The report also highlights the growing influence of Gen Z buyers, who prioritise lifestyle fit, safety features, and long-term value in their vehicle choices, further pushing organised players to up their game.
Looking ahead, India’s pre-owned car industry is entering a new phase where organised players, supported by certified programs, financing solutions, warranties, and AI-driven transparency, are formalising what was once a fragmented space. With the government’s vehicle scrappage policy set to unlock a fresh supply of cars and encourage responsible upgrades, the sector is poised for rapid, sustainable, and tech-driven expansion in the coming years.
