India’s used car market expected to double in value to over $ 70 billion by FY2028
In the light of current scenario, the Indian automotive world has seen a quick jump in not only the new car buyers but also the used car buyers. India’s used car market’s evaluation has been dropped by the latest India Blue Book report. As per the latest edition of the India Blue Book Report, India's used car market is expected to be valued at over USD 70 billion by FY 2028, almost doubling in value. The pre-owned car market’s current valuation (FY2023) stands at $31.33 billion.
It can be said that this surge in demand is fueled by factors like rising disposable incomes, a young population, shorter vehicle replacement cycles, and a growing preference for personal mobility. Despite this growth, India's car ownership penetration remains low at 20-22 cars per 1,000 people, highlighting the vast untapped potential in the market.
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India's used automobile market is changing, moving toward a more structured and regulated environment. The gap between organized and unorganized markets changed in FY2023 as organized marketplaces grew. By FY2028, it is anticipated that this trend will have continued, with structured markets holding a 55:45 advantage. A growing number of purchasers are realizing that the organized sector offers superior experiences, expert setups, simpler financing options, increased transparency, and quality guarantees.
The Indian used automobile industry is expected to nearly double in value from its current value to over $70 billion by FY2028, according to the most recent India Blue Book research. The pre-owned automobile market is expanding thanks to mass market companies like Mahindra, Maruti Suzuki, Hyundai, Tata, Toyota, and Toyota. The survey also shows that consumers are taking into account aspects outside of their budgets, with financial aid, warranties, and operating and maintenance expenses all being important considerations when making purchases.
Local used car dealers continue to be the most popular choice for buying pre-owned cars, followed by OEM-backed units and auto tech firms, according to a customer poll. Additionally, the survey indicates that leasing might gain popularity as a used automobile option. The demand for more household vehicles and the desire for a newer car are two factors that are fueling the increase in used car sales. Furthermore, because used cars are more affordable and viable than new automobiles, more people are choosing to buy them thanks to the GST rate on used cars, which is lower than that on new cars.
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