The used car market in India is expected to grow from 4.6 million sales in 2023 to 10.8 million by 2030, cruising ahead with an impressive compound annual growth rate (CAGR) of 13 per cent, as per a report on Thursday.
2024 came out as the milestone year in which used car sales outperformed new car sales with an impressive ratio of 1.3:1.
The used-car market trends found a rise in the number of environment-conscious buyers as EV sales rose 5X times in 2024 with Maharashtra, Karnataka, and Delhi taking the lead.
The SUVs continued dominating the market share by capturing 16.7 per cent of the market in 2024, according to a CARS24 report, which had gained momentum from 2023.
"The erstwhile niche pre-owned car market has made it stormy and redefined car ownership in India. As the customer preferences change for more affordable and dependable options, the used-car market is seeing an uptick vis-à-vis the new car market," said Gajendra Jangid, co-founder, CARS24.
On the other hand, ASP of new cars continues to climb, thereby opening further differences between ASP of new and used cars.
The number of new car ASPs rose 32 percent and used cars up 24 percent.
The rise in price is still manageable to make the older car the value-for-money offering that is quality without a price tag, the report said.
The report reveals that new car financing has also experienced rapid growth from 60 percent in 2010 to an impressive 84.2 percent in 2024, with consumer dependence on loans for owning vehicles.
In addition, used-car financing also witnessed a positive trend by growing from 15 percent to 23 percent in the same period.
According to the report, "the post-covid era has already shifted consumer preferences by 12 percent of car buyers favoring personal mobility for convenience and safety over shared transportation."
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