The Indian pre-owned car market is on a path of significant growth with sales projected to reach 10.92 million units by FY28. According to the Indian Blue Book (IBB) report 2023, released by car&bike and Das WeltAuto by Volkswagen, the value of the used car industry in India was $31.33 billion in FY23. This figure is expected to more than double to $70.48 billion by FY28.
Several factors are driving this expansion, especially the middle class with rising disposable incomes and an increasing preference for personal mobility are creating strong demand for pre-owned vehicles. The report highlights that the market for pre-owned cars is not only growing but also evolving with customer preferences shifting towards quality and safety features.
Ashish Gupta, Brand Director at Volkswagen Passenger Cars India, stated 'The pre-owned car market is growing significantly, with potential to double by FY 2028. This growth is driven by evolving trends and customer preferences, particularly the prioritisation of safety features. Volkswagen's 5-star GNCAP rated products like the Taigun and Virtus are highly in demand due to these preferences.'
The report emphasises the transformation of the Indian used car market from an unorganised sector to one increasingly dominated by organised players. Brands like Mahindra First Choice and Maruti True Value are leveraging their brand equity and trust to attract more customers, offering certified pre-owned cars with comprehensive warranties.
Financial Growth: The pre-owned car market is projected to reach $70.48 billion by FY28 from $31.33 billion in FY23.
Sales Channels: The report indicates a growing preference for digital and phygital (physical and digital) sales channels. About 45% of buyers prefer local dealers, while 26% opt for automotive tech startups and 23% for OEM-backed brands.
Car Leasing: Awareness of car leasing is rising, with 28% of buyers aware of the concept and 62% willing to consider it in the future.
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