“Apart from an increasing preference for personal mobility, other key factors such as rising disposable incomes and shorter vehicle replacement cycles are encouraging as well. All these factors will only invigorate the demand for pre-owned cars,” the report said.
Post COVID-19, the demand for used cars among new-age buyers remains high globally. In India, the story is no different. The Indian market for used cars will rise exponentially, as social taboos in relation to used cars are fast fading, it added.
“Therefore, the growth story of the used cars industry is an irrefutable reality. The used car industry in India, which presently stands at about USD 32.44 billion, is expected to touch nearly USD 73 billion by FY2028. In a span of five years, India’s used car industry will witness a paradigm shift,” the report added.
It pointed out that there is an enormous untapped potential in the country’s used car market.
“Already dynamic and attractive, this market, however, remains unexploited in myriad ways. Currently (FY23), it stands at 5.1 million units. By FY 2026-27, it is expected to reach a staggering 8 million units, and by FY 2027-28, it is projected to cross the magic 10-million units mark,” the report said, adding the pre-owned car market is considered to be a thriving segment of the automotive industry. Upgrading to a new pre-owned car is the top reason for owners to sell cars while budget buyers are predominantly looking for quality cars, it said. The Indian Blue Book is backed by Mahindra First Choice Wheels. Since 2022, Das WeltAuto, the pre-owned car brand of Volkswagen, and ‘car&bike’, a 100 per cent arm of Mahindra First Choice Wheels, have co-curated this research report.
Commenting on the findings, Volkswagen Passenger Cars India Brand Director Ashish Gupta said,”The pre-owned car market is significantly growing with the potential of it being doubled by FY 2028. The growth primarily comes from the evolving trends and customer preferences while selecting a pre-owned vehicle.”
As per the report, the majority of buyers (63 per cent) are highly budget conscious and were looking for quality cars.
“The increasing involvement of organised players is bringing stability and trust to this market; achieving consistent profitability and providing superlative customer experience remains the top priorities for organised players,” Mahindra First Choice CEO & MD Ashutosh Pandey said.