The used (used) car market in India has crossed Rs 1.80 lakh crore ($23 billion). At the same time, the used car market is expected to grow at a rate of 19.5% annually in the next five years. According to the Indian Blue Book (IBB) report, the business of buying and selling used vehicles is dominated by the unorganized sector. Most deals for used cars take place between roadside garage mechanics, petty brokers, and vehicle owners.
The organized sector's share in the used car market is currently around 20%, which is expected to reach 45% by 2026. This business is growing rapidly with the disposable income of the youth and middle-income group. The used car market will get a boost in the next five years.
Ashutosh Pandey, the CEO, of Mahindra First Choice, said, “There is a preference for used cars among middle-income people in the country. On the other hand, Ashish Gupta, Brand Director, Volkswagen Passenger Cars India said, “The gap between the sales of new and used cars has reduced.