India’s used car market races past 5.9 million, set to double and hit 10 million by 2030: Indian Blue Book Report Fy’25

November 13, 2025

• Nearly 1 in 2 Buyers Choose SUVs
• Digital-First Algorithms on the rise
• Non-Metro Demand Powers India’s Pre-Owned Auto Boom

Mumbai: India’s pre-owned car market reached 5.9 million units in FY24-25 and is projected to grow at a 10% CAGR, reaching 9.5 million units by 2030, according to the 7th edition of the Indian Blue Book. The annual report is developed by car&bike by Mahindra First Choice and Volkswagen Pre-owned Certified. The annual report, recognized as the definitive benchmark for the nation’s used car industry, draws on extensive research to map buyer sentiment, market shifts, and the technologies shaping tomorrow’s mobility.

Market Trends and Consumer Insights: The report highlights a shift toward premiumization and consolidation. SUVs and compact SUVs now capture more than 50% of used car market, up from 23% just four years ago; average selling prices have risen sharply by 36% over four years; and non-metro buyers have emerged as the fastest-growing force, with 68% expressing likelihood to repurchase a used car. Consumers are showing strong brand loyalty, with 42% willing to buy the same brand again, and a clear trend of upgrading to newer, safer pre-owned cars is emerging, as buyers increasingly value quality, safety ratings, and detailed technical specifications.

Also speaking on the launch of the report, Mr. Nitin Kohli, Brand Director, Volkswagen India, said, “Indian consumers today are more informed and discerning; they seek vehicles that offer proven safety, reliability, and performance. The strong demand for the brand’s 5-star GNCAP-rated portfolio, including the Taigun and Virtus, is a testament to this shift. Our Certified Pre-Owned business has emerged as a key growth avenue for Volkswagen, reflecting the same customer priorities. Buyers today want the reassurance of a quality-checked, transparently certified vehicle with a clear service history and these values align perfectly with our brand promise.” 

Mr. Mohammed Turra, MD & CEO, Mahindra First Choice comments on this shift: “For the first time, used cars in India are driving aspiration, not just affordability. With used car market at 5.9 million in FY25 and SUVs becoming the vehicle of choice, Indians everywhere—from metros to small towns—are choosing quality and confidence over compromise. As organized platforms raise the bar for trust and service, we’re seeing a fundamental shift in how the used cars are being bought and sold. The used car is now a choice, not a fallback option”.

Key Insights from the Indian Blue Book Survey:

• Organized Players Lead: Over 70% of customers believe organized dealers provide superior service, vehicle quality, and justified premiums for peace of mind. Organized frameworks also fare better due to scale and efficiency for the business; margin pressure hits unorganized dealers hardest.
• High-Quality Vehicles in Demand: Cars with higher residual value or build quality see longer ownership periods and continued aftermarket demand. Volkswagen, Skoda and Honda are brands that lead the chart here.
• Popular Age Segment: Vehicles aged 4–7 years account for 30% of organized used car transactions.
• Segment Upgrades: Consumers are upgrading from hatchbacks → compact SUVs/ sedans → full-size SUVs, reflecting strong premiumization.
• Non-Metro Growth Potential: 68% of non-metro buyers are likely to purchase used cars again, highlighting opportunities for organized players.
• Warranty is Key: 66% value warranty as the most important add-on service, critical across both metros and non-metros.
• AI Adoption Rising: Although currently just 6% of purchases involve AI tools, adoption is set to accelerate in the coming months and years.
• Brand loyalty is Rising: 42% of customers register an intent to buy the same brand again.
• Procurement is Expanding: Dealers are using more procurement channels, with exchanges from new car dealerships making up 41%. OEMs are becoming a key source for used inventory as well.

The report also underscores the role of digitally native buyers, who prioritize lifestyle alignment, safety, and long-term value in their vehicle choices.

Looking ahead, the growth of India’s pre-owned car market will be shaped by the rising influence of organized players, who are formalizing what was once a fragmented space through certified programs, financing, warranties, and technology-led experiences. With the government’s vehicle scrappage policy creating a fresh supply pipeline and encouraging consumers to upgrade responsibly, the ecosystem is entering a new phase of opportunity. Together, these shifts point to a market that is not only growing rapidly but also becoming more transparent, sustainable, and future-ready.

Read the entire report here: https://www.mahindrafirstchoice.com/services/indianbluebook

The Indian Blue Book by car&bike has been the leading authority in the used vehicle price discovery space since its inception. In 2016, the first edition of the Used Car Market report was launched as the first empirical industry study to highlight the trends in the used car industry in India. Since 2022 Volkswagen Certified Pre-Owned., the preowned car brand of Volkswagen, and car&bike, a subsidiary of Mahindra First Choice Wheels, have co-curated this research report.

About Volkswagen Certified Pre-Owned, the pre-owned car platform by Volkswagen Passenger Cars India

Volkswagen Certified Pre-Owned (CPO) is the certified pre-owned car business of Volkswagen Passenger Cars India. It is a one stop solution that facilitates buying, selling and exchange of multi-brand pre-owned cars. It offers a comprehensive 154-check point inspection on pre-owned cars and enables customers to utilize the expertise and extensive network of 137 DWA outlets in making informed decisions. The CPO platform also conducts the necessary due diligence and certifies the vehicle along with offering warranty, service value packages, accessories options, extended warranty and maintenance program for its customers.

About Mahindra First Choice Wheels

Mahindra First Choice Wheels (MFCW), a part of Mahindra group, is India’s leading multi-brand used vehicle company, with a wide network of franchise dealerships across the country. Its services span organized used-car retail, vehicle auctions, inspections, yard management, price discovery, financing, and warranty solutions. With its strong footprint and customer-first approach, MFCW has played a pioneering role in building trust and transparency in India’s pre-owned vehicle market.

About car&bike

car&bike is a leading auto-tech platform building India’s largest hyper-local integrated network for content and commerce, combining credible auto dealerships, awards, and technology solutions for buyers and sellers.