March 3rd, 2024
The Indian used car market is projected to reach USD 100 billion by 2034, growing at a
15% CAGR from USD 25 billion in 2023, according to CARS24 Co-Founder and CEO
Vikram Chopra. Factors such as urbanization, a rising middle class, and changing
consumer preferences are driving this growth. The market has seen significant
acceleration in recent years, with increased demand for feature-packed SUVs and a
shift towards more frequent car upgrades. Despite this growth, car ownership in India
remains low compared to other countries, indicating significant potential for further
expansion.
Indian used car market is expected to touch the USD 100 billion-mark in the next ten years on the back
of rising disposable incomes and a growing middle class, according to CARS24 Co-Founder and
CEO Vikram Chopra. As per the findings of the Gurugram-based online used car marketplace, there
are changes in market dynamics with customers opting for frequent upgrades when it comes to cars.
"According to our internal study, the anticipated growth of the Indian used car market is set to occur at
a 15% CAGR, increasing from USD 25 billion in 2023 to USD 100 billion by 2034," Chopra told PTI
in an interaction.
The growth trajectory is propelled by various factors unique to the Indian market, including
urbanisation and a growing middle class, which is changing consumer preferences and boosting the
demand for affordable mobility solutions, he added.
Chopra noted that when CARS24 began its journey eight years ago, the used car market size stood at
around USD 10-15 billion.
"I think, in the last 3-4 years, with different kinds of cars coming up, the market has truly accelerated,"
he stated.
The car ownership in the country remains low as compared to various developed geographies, Chopra
said.
In the US and China or in Europe, 80-90% of the population has a car while in India only around 8%
of the population owns a four-wheeler, he added.
"So we still have a long way to go from here," Chopra said.
Another prominent indicator of the adoption of the used cars trend is the shortened ownership cycle, as
the younger generation is opting to sell their cars within 5-6 years of purchase, in stark contrast to the
patterns observed two decades ago when vehicles were typically held for 10-12 years, he noted.
"As millennials increasingly opt for more frequent car upgrades, the market is witnessing a consistent
inflow of high-quality, aspirational cars," Chopra said.
Further, he noted that the demand for feature-packed SUVs has also surged in the last four years,
experiencing significant growth from 30% in FY19 to 59% in the first half of FY24.
The SUV-centric trend has extended beyond new car acquisitions and is making its presence felt in the
used car market with a 4-6% growth since FY21, Chopra said.
"Our internal analysis indicates a 14% surge in the sales of cars valued above INR 8 lakh between
2018 and 2023. This shift is intricately tied to increasing income levels and the expanding middle
class, influencing the changing landscape of the market," he stated.
Besides, while metropolitan cities accounted for 65% of pre-owned cars supply in FY22, there is a
strong inclination towards used cars in non-metro cities, and the demand is expected to swell at a rate
of 30% Compound Annual Growth Rate (CAGR) by FY27, he added.
Chopra noted that CARS24 also expects used electric vehicles to become available in the market
within the next five years to meet the growing demand.
Source - auto.economictimes.indiatimes.com
1 x $40.00
1 x $40.00
Get InformationBook Test DriveMake an Offer