Exclusive: Organised Used Car Market Share To Grow To 45 Per Cent By FY2027 – IBB Report

The 2022 Indian Blue Book (IBB) Report on the used car industry in India is confident that the share of organised used car market will grow to 45 per cent by FY 2027 from current 20 per cent.

By Carandbike Team


2 mins read


Published on September 12, 2022

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  • Currently, the share of organised sector in the used car segment is just 20%
  • It is expected to grow to 45 per cent by FY2027
  • Most used car transactions still happen in unorganised sector

The used car market in India is primarily driven by the unorganised sector, which has a share of 45 per cent, with customer-to-customer transactions having a share of 35 per cent, leaving just 20 per cent for the organised sector. But with many passenger car OEMs having their own used car sales arm and the rise of online used car portals, combined with the customers’ preference for online sales and ‘Phygital’ auto-tech platforms are increasingly becoming popular as well, it is just a matter of time before organised sector has a lion’s share of the used car sales in the country. 

Also Read: Used Car Sales In India To Surpass 8 Million Units By FY2027

The 2022 Indian Blue Book says that the share of organised sector in used car sales is likely to grow to 45 per cent by FY2027, with sales from unorganised sector dropping down to 33 per cent and customer-to-customer transaction down to 22 per cent.  

(L-R) Ashish Gupta - Brand Director, Volkswagen Passenger Cars India with Ashutosh Pandey, CEO - Mahindra First Choice Wheels at the launch of the FY2021-22 IBB Report 

Also Read: Women Constitute Up To 15 Per Cent Of Used Car Buyers In India

On the demand side, organised used car platforms provide services such as transaction listings for dealerships, which, in turn, help rotate dealer stocks’ faster and brings about growth. Buyers are increasingly looking to purchase vehicles with financing at a low cost, which when coupled with warranties shoots up a premium. However, this premium is justified with the after sales support, and the hassle of vetting quality vehicles is no longer a cause for concern for prospective customers. 

Also Read: Leasing & Subscription Could Be The Next Big Thing For Used Cars

Potential buyers can reserve, test drive, finance, and purchase a certified used car through used car digital platforms. The cars are supplied to them with a two-year warranty, which is apart from guaranteed repurchase, and an easy returns’ policy along with lowest IRR financing. These platforms also allow buyers to opt in for accessories, thereby enhancing the monetisation of value-added services. 

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