According to the seventh edition of the Indian Blue Book (IBB), India’s pre-owned car market is growing rapidly and reached 59 lakh units in FY 24-25. This annual report, prepared by Car & Bike (Mahindra First Choice) in collaboration with Volkswagen Pre-Owned Certified, estimates that this market will grow at the rate of 10% CAGR (Compound Annual Growth Rate) and reach 95 lakh units by 2030.
Mohammed Turra, MD & CEO, Mahindra First Choice, comments on the change: “The Indian used car market is growing rapidly, driven by growing demand, structural mobility needs and acceptance of used cars as a smart, aspirational option. Organized companies are fostering trust and transparency through certified vehicles, structured warranties, accessible finance and AI-enabled journeys, making it easier for both buyers and sellers. “Unprecedented opportunities are being created.”
The report highlights a shift in consumer preferences towards premium and feature-packed vehicles, with SUVs – especially compact SUVs – emerging as the leading choice. Additionally, consumers are becoming more discerning, balancing price sensitivity with expectations of security, features and long-term value. Many buyers now view pre-owned vehicles as a means to access a higher class, moving from hatchbacks to compact SUVs or sedans, and from sedans to SUVs.
IBB’s FY25 report underlines the growing role of organized players in the used car sector. More than 70% of the customers surveyed believe that organized dealerships offer better service quality, better vehicles and value for money, even if the prices are slightly higher.
This change is being driven by AI-enabled platforms and technology-based monitoring systems, which are making transactions more transparent. The report said that currently only 6 percent of used car purchases include AI tools, but as digital confidence among consumers increases, the use of AI features is expected to increase rapidly.
Indian Blue Book FY25 also features the most sought-after models across key categories in the country’s pre-owned car market. In the SUV segment, Mahindra XUV700 and Toyota Fortuner lead the way, followed by Scorpio and Grand Vitara as strong contenders, and Mahindra Thar is also included in the list.
In the sedan segment, Maruti Dezire and Hyundai Verna lead the demand, while Virtus, City and Slavia have emerged as better value options. Volkswagen Polo and Maruti Baleno continue to dominate the hatchback category, followed by Swift, i20 and Grand i10.
Among compact SUVs, models like Volkswagen Taigun and Hyundai Creta are at the top position, followed by Nexon, Sonet and Brezza. In the MUV segment, Toyota Innova continues to maintain its leading position, ahead of the Ertiga and Kia Carens.
The report also notes that vehicles aged four to seven years now account for nearly 30% of all organized used car transactions, reflecting consumer comfort towards slightly older, but well-maintained vehicles.
66% of the buyers surveyed cited warranty coverage as the most important added feature when buying a used vehicle, with peace of mind and after-sales support being the top factors. Cars with higher residual value and better build quality have longer ownership periods and are in higher demand for resale in the aftermarket. Moreover, 42% of buyers prefer to choose the same brand for their next purchase.
