India Pre-Owned Car Market: Current Analysis and Forecast (2024-2032)

Report Description

India Pre-Owned Car Market Size & Forecast

The India Pre-Owned Car market was valued at USD 30,500 million in 2023 and is expected to grow at a strong CAGR of around 13.95% during the forecast period (2024-2032) owing to rising demand for cars with economical pricing solutions across India.

India Pre-Owned Car Market Analysis

India Pre-owned cars market has shown a robust growth in the recent years. Pre-Owned cars are second-hand cars with some usage by the first buyers and are listed on the market for further purchase. These vehicles due to the depreciation and launch of new models of later generations are quite affordable and provide a value-for-money option for buyers. Some of the key factors attributed to the growth are higher demand for second-hand cars due to their economical pricing as well as a year-on-year increase in the prices of cars across the country.

The India Pre-Owned Car market was valued at USD 30,500 million in 2023 and is expected to grow at a strong CAGR of around 13.95% during the forecast period (2024-2032). One of the key factors that has supported the demand for pre-owned cars in India is the higher number of cars being sold in the country and people changing their cars in fewer years. With the ease of loan disbursal and the launch of new models with upgraded functions, people are often buying new vehicles making a huge number of vehicles to be added in the second-hand cars market. According to Auto Punditz, the total sales of cars in India during September 2024 was 3,58,879. The sales of cars across the country have grown year by year further resulting in the rise of second-hand cars.   

Additionally, the demand pricing for cars in recent years has exponentially increased due to the increase in the cost of manufacturing vehicles. This phenomenon has impacted the new car purchasing ability of price-sensitive buyers and forced a large set of buyers to move towards pre-owned vehicles. Considering the shifts in the Indian market the demand for pre-owned cars is further anticipated to grow during 2024-2032.

India Pre-Owned Car Market Trends

This section discusses the key market trends that are influencing the various segments of the India Pre-Owned Car Market as identified by our team of research experts.

Digital Platforms and Online Sales Growth

The purchase of second-hand or pre-owned cars is a crucial step for buyers in India. Most buyers are skeptical about the user condition of the used cars and searching for cars with less wear & tear is another hassle. With online platforms, buyers have found ease in opting between different models, purchase years, driven kilometers, condition of engine, and going through several vehicle checkpoints in order to find the one vehicle that suits their needs the most.

Furthermore, the online platforms have also made the sale and purchase of pre-owned cars easier as compared to physically visiting the stores. Online listing of vehicles also fuels competitiveness among the different brands due to which the prices are checked and the customers get a better pricing alternative.

These online websites have also offered no-pressure shopping helping customers to do their own research.

Considering the rising demand online platforms for sales of second-hand vehicles in India the demand for Pre-Owned Car would further rise during 2023-2032.

North India is Expected to Hold Major Market Share During Forecast Period

North India has held a sizable market in India’s Pre-owned cars market during 2022 & 2023. With the growing demand for second-hand cars and expansively growing urban centers, the demand for cars for urban commuting has grown. Delhi, Lucknow, Chandigarh, etc., have become some of the key hubs for the purchase of pre-owned cars. Additionally, the region is experiencing a major urbanization due to which the customers are looking forward to alternatives to shift from two-wheelers to cars. Furthermore, the Delhi NCR 10-year Diesel and 15-year petrol vehicle policy has also fueled the demand for rapidly exchanging their cars and leading second-hand car buyers to obtain vehicles at reasonable prices in Delhi NCR and other neighboring states.

Furthermore, the purchasing power in the region has also increased due to the rising disposable income among the buyers further promoting the market growth. Accounting for all the factors the North India region is anticipated to exhibit a rapid growth in the India Pre-Owned Car Market during 2024-2032.

India Pre-Owned Car Industry Overview

The India Pre-Owned Car market is competitive and fragmented, with the presence of several Indian market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the Cars24, Maruti True Value, Mahindra First Choice Wheels, Hyundai Promise, Honda Auto Terrace, Toyota U Trust, Big Boy Toyz, BMW Premium Selection, Audi Approved Plus, and Mercedes-Benz Certified.

India Pre-Owned Car Market News

In 2023, Audi opened its 24^th pre-owned car showroom in Noida Uttar Pradesh. According to Audi Plus, the company has grown 53% in the first half of the year 2023 and is further anticipating growth in the coming period.

In 2024, Toyota Kirloskar, opened its first company-owned used car outlet in New Delhi. The facility spanning over the area of 15,000 square feet displays 20+ Toyota-certified vehicles.

India Pre-Owned Car Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The India Pre-Owned Car market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the India Pre-Owned Car Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the India Pre-Owned Car market were the three major steps undertaken to create and analyze the adoption of India Pre-Owned Car in major regions in India. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the India Pre-Owned Car market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the India Pre-Owned Car market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the India Pre-Owned Car market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as By Vehicle Type, By Vendor Type and By Fuel Type. Further regional/country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India Pre-Owned Car market. Further, we conducted factor analysis using dependent and independent variables such as By Vehicle Type, By Vendor Type and By Fuel Type Channel in the India Pre-Owned Car market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the India Pre-Owned Car market sector across the country.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the India Pre-Owned Car market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors, including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques, i.e., the top-down/bottom-up approach, were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets in India. The research methodology adopted to estimate the market size encompasses:

The industry’s market size, in terms of revenue (USD) and the adoption rate of the India Pre-Owned Car market across the major markets domestically

All percentage shares, splits, and breakdowns of market segments and sub-segments

Key players in the India Pre-Owned Car market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

 Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India Pre-Owned Car market. Data was split into several segments and sub-segments after studying various parameters and trends By Vehicle Type, By Vendor Type and By Fuel Type in the India Pre-Owned Car market.

The main objective of the India Pre-Owned Car Market Study

The current & future market trends of the India Pre-Owned Car market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the India Pre-Owned Car market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas By Vehicle Type, By Vendor Type and By Fuel Type.
• Define and analyze the regulatory framework for India Pre-Owned Car industry.
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the India Pre-Owned Car market for the major regions.
• Major regions of India studied in the report include North India, East India, West India, and South India
• Company profiles of the India Pre-Owned Car market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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