by Suman Gupta
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
About Indian Blue Book
Launched in 2016, the Indian Blue Book is India’s most extensive primary research report on the pre-owned car industry, providing data-driven insights into market trends, buyer behavior, and emerging opportunities. Since 2022, the report has been co-curated by car&bike and Volkswagen Pre-owned Certified.
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.
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 Volkswagen Pre-Owned Certified : Volkswagen Pre-owned Certified is the certified pre-owned car business of Volkswagen Passenger Cars India, offering multi-brand pre-owned car buying, selling, and exchange with comprehensive inspections, warranties, and service packages across its network.
