India's Pre-Owned Car Market Set To Reach 10.92 Million Units By FY2028: IBB Report 2023

The sixth edition of the India Blue Book report has been released, providing new insights into the pre-owned car market. 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. The mass market brands remained the key growth drivers in the used car space, with significant demand being seen for pre-owned cars from Maruti Suzuki, Hyundai, Tata, Toyota and Mahindra.

“The latest edition of the Indian Blue Book, a collaboration with Das WeltAuto. by Volkswagen, reinforces our confidence in the Indian pre-owned car market's explosive growth potential. The increasing involvement of organised players is bringing stability and trust to this market; achieving consistent profitability and providing a superlative customer experience remain the top priorities for organised players.” said Mr. Ashutosh Pandey, CEO & MD, Mahindra First Choice.

The latest report revealed that the majority of buyers are considering factors other than just budget, with 71 per cent of survey respondents also looking at other factors such as running and maintenance costs, while warranty and financial assistance ranked highly in the buying decision process. Price, too, continued to play a significant factor, with 63 per cent of buyers sticking to their guns regarding their budget. The buyer preference also still looked to be more internal combustion-centered with 56 per cent of respondents still weary of buying EVs in the second-hand market.

The survey of buyers also revealed that the local used car dealer remained the most popular option for picking up a pre-owned car, followed by Auto Tech Start-ups and OEM-backed units such as Maruti True Value, Volkswagen Das WeltAuto, Toyota U Trust, and more. The study also revealed that leasing could become an up-and-coming option in the used car market going forward.

The survey also revealed that buyers wanting to move to a newer used car was an important factor in the growth of used car sales. The second big factor was the decision to have another vehicle in the household – a factory that has gained traction, particularly during and after the pandemic.

Also Read: Used Car Market Report 2022-2023

Other survey findings included a notable decline in the turn-around time of used cars with the growth in digitisation in the buying and marketing process and sellers prioritising full settlement of sales within 24 hours followed by vehicle inspection.