Used car market in India to grow four times by 2034, SUV demands up: CARS24 CEO

India’s thriving used car market is set to grow exponentially in the next 10 years. According to CARS24, one of India’s top private used car providers, the segment is likely to witness a four-fold growth by 2034. It is expected to become a $100 billion market (roughly converted to around 82 lakh crore) as more Indians are keen on buying second-hand models as growing middle class use rising disposable income to upgrade to four-wheelers.

One of the biggest reasons behind the massive growth of the used car market in India is attributed to customers looking to upgrade their choice of vehicles quite frequently. Vikram Chopra, Founder and CEO at CARS24, said the changing dynamics will be key for the segment to see a big jump in sales in the next 10 years. He said, an internal study conducted by the Gurugram-based used car seller, the growth of the segment is set to be 15 per cent CAGR.

CARS24, which started operating in the used car business eight years ago, has seen the segment populated by other popular players like Spinny and others in recent times. The size of the used car market, which used be around $15 billion (roughly converted to around ₹1.25 lakh crore), has so far grown around 60 per cent in the last eight years. “I think, in the last 3-4 years, with different kinds of cars coming up, the market has truly accelerated,” said Chopra in an interview to PTI.