New Delhi [India], January 26 : India's used car market is projected to grow from 4.6 million sales in 2023 to a whopping 10.8 million by 2030, cruising ahead with an impressive compound annual growth rate (CAGR) of 13 per cent, as per a report by auto tech company CARS24.
The Indian used-car market is shifting gears, the auto tech company asserted.
As customer preferences change for more affordable and dependable options, the used-car market is witnessing an uptick vis-a-vis the new car market, the auto tech company said in a statement.
Gajendra Jangid, Co-Founder of CARS24, said, "The once niche pre-owned car market has taken by storm and redefined car ownership in India. The Gear of Growth report by CARS24 reflects the changing consumer preferences, buying trends, and the evolving used-car market."
2024 used-car market trends witnessed an increase in eco-conscious buyers as EV sales increased 5X in 2024 with Maharashtra, Karnataka, and Delhi leading the charge, the CARS24 report revealed.
Continuing the momentum from 2023, SUVs continued to dominate the market share with 16.7 per cent in 2024. Their spacious design, versatility, and premium appeal made them a favourite across both urban and rural markets, the report argued.
The Average Selling Price (ASP) of new cars continues to climb, further widening the gap between the ASP of new and used cars.
New car ASPs have seen a 32 per cent surge, while used cars experienced a 24 per cent increase, CARS24 said.
Financing for new cars has seen significant growth, climbing from 60 per cent in 2010 to an impressive 84.2 per cent in 2024, highlighting the increasing consumer reliance on loans for vehicle ownership.
Similarly, the used-car financing market has also made strides, rising from 15 per cent to 23 per cent during the same period. However, this lower penetration in the used-car segment reveals a vast opportunity for financial institutions and dealerships to expand their offerings, the report said.
Founded in 2015, CARS24 offers services like buying, selling, loans, insurance, driver on demand, FASTag, challans, scrapping and more.