Used car market overtakes new car sales in India: CARS24's report

India's used-car market has surpassed new car sales in 2024, with 5,412,945 units sold versus 4,163,804 new cars, as per CARS24's report.

 

The report, titled The 2024 Indian Used-Car Market Report, projected a 13 per cent compound annual growth rate (CAGR), driving sales to 10.8 million units by 2030. This surge is fuelled by increased consumer trust in organised players, the growing affordability gap between new and used cars, and expanding financing options.

 

In 2024, electric vehicle (EV) sales saw a five-fold increase, while SUVs captured 16.7 per cent of the market share, driven by their versatility, spaciousness, and premium appeal.

   

The average selling price (ASP) of new cars has surged by 32 per cent, while used cars saw a 24 per cent increase. According to the company, this widening gap makes used cars a more attractive and budget-friendly option for a growing segment of buyers.

 

While new car financing has reached 84.2 per cent, used-car financing is steadily increasing, rising from 15 per cent to 23 per cent.

 

Maharashtra, Uttar Pradesh, and Delhi emerged as key drivers of the used-car boom, reflecting diverse regional demands.

 

The Maruti Swift emerged as the most sought-after model across the country, while models like the Santro, Tiago NRG, and Wagon R consistently delivered strong resale value.

 

Speaking on this, Gajendra Jangid, co-founder of CARS24, stated, "The average selling price of a used car is approximately half that of a new car. Furthermore, enhanced financing accessibility within the used-car market is facilitating a growing consumer preference for pre-owned vehicles."