Mumbai, November 13, 2025: 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.
Market Trends and Consumer Insights
The report highlights a shift toward premiumization and consolidation. Demand for SUVs, especially compact SUVs, is rising, even among budget-conscious buyers. Consumers are showing strong brand loyalty, with 42% willing to buy the same brand again, and non-metro buyers are emerging as the most enthusiastic segment for repeat pre-owned purchases.
AI-enabled platforms are gaining traction, with trust and transparency being bolstered through technology-driven vehicle inspections, certifications, and predictive insights. Generative AI is poised to transform the research and purchase journey for digitally native, research-driven consumers. Organised players are leading the way through leveraging this technological advancement and responding to the increasingly aware consumers’ demand.Mohammed Turra, MD & CEO, Mahindra First Choice comments on this shift:
“The Indian used car market has come of age, fuelled by rising demand, structural mobility needs, and growing acceptance of used cars as a smart, aspirational choice. Organised players are driving trust and transparency through certified vehicles, structured warranties, accessible financing, and AI-enabled journeys, creating unprecedented opportunities for buyers and sellers alike.”
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.
High-Quality Vehicles in Demand: Cars with higher residual value or build quality see longer ownership periods and continued aftermarket demand.
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.
The report also underscores the role of digitally native Gen Z 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: Link
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