India's Used Car Sales Set to Reach 10.8 Million by 2030: Forecast
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Synopsis
New Delhi, Jan 23 (NationPress) The pre-owned car market in India is projected to grow from 4.6 million sales in 2023 to 10.8 million by 2030, achieving a compound annual growth rate (CAGR) of 13 percent, according to a recent report.
Key Takeaways
- Used car sales expected to hit 10.8 million by 2030.
- 2024 marks the first year used cars outpace new car sales.
- Electric vehicle sales surged fivefold in 2024.
- SUVs hold a significant market share in 2024.
- Financing for new cars has risen from 60% to 84.2% since 2010.
New Delhi, Jan 23 (NationPress) The pre-owned car market in India is anticipated to expand from 4.6 million sales in 2023 to 10.8 million by 2030, achieving a remarkable compound annual growth rate (CAGR) of 13 percent, as revealed in a report released on Thursday.
2024 is set to mark a significant milestone, where sales of used cars outpaced new car sales in a notable ratio of 1.3:1.
Trends in the used car sector have shown a rise in environmentally-conscious buyers with electric vehicle (EV) sales surging fivefold in 2024, with states like Maharashtra, Karnataka, and Delhi leading the way.
Building on the momentum from 2023, SUVs have maintained their dominance with a market share of 16.7 percent in 2024, according to a report by CARS24.
“The previously niche used car market has revolutionized car ownership in India. As consumer preferences shift towards more affordable and reliable choices, the used car sector is experiencing growth compared to the new car market,” stated Gajendra Jangid, Co-founder of CARS24.
Notably, the average selling price (ASP) for new cars continues to rise, creating a larger disparity between the ASP of new and used vehicles.
The ASP for new cars has jumped by 32 percent, while the ASP for used cars has risen by 24 percent.
Despite this upward trend in pricing, used cars remain the more accessible and cost-effective option for consumers, delivering exceptional value without sacrificing quality, as per the report.
The report also highlighted that financing for new cars has experienced substantial growth, increasing from 60 percent in 2010 to an impressive 84.2 percent in 2024, indicating a rising consumer dependence on loans for vehicle acquisition.
Similarly, the financing landscape for used cars has advanced as well, climbing from 15 percent to 23 percent in the same timeframe.
“The post-Covid landscape has prompted a major shift in consumer preferences, with 12 percent of car buyers now prioritizing personal mobility for safety and convenience over shared transport options,” the report noted.
