In charts: How second-hand car sales are picking up in India
Subscribe to enjoy similar stories. As India's economy expands, an interesting shift is underway in the vehicle market—consumers are increasingly moving from two-wheelers to passenger cars. But not everyone is opting for brand-new vehicles; many are fulfilling their dream of car ownership by turning to the second-hand market.
This shift is evident in sales data. The share of passenger vehicles in total vehicle sales has risen from 12.9% in 2018-19 to 17.7% in 2023-24, while two-wheelers have seen a relative decline. The second-hand car market has emerged as a key beneficiary of this trend.
Many first-time car buyers are former two-wheeler owners looking to upgrade, creating fresh momentum for the segment, said noted Deloitte India partner Rajat Mahajan. While car ownership remains concentrated among India's top 10% income group, it has been rising across economic segments over the past decade. Notably, used car sales are growing faster than new car sales.
Read this | How India's mega plan to boost auto production sputtered The increasingly organized nature of the second-hand car market—with manufacturer-backed certification programmes and improved financing options—has made car ownership more accessible. According to Deloitte, 90% of used car purchases in India are priced below ₹10 lakh, with average selling prices in the ₹4.5-5 lakh range. Despite the growth in car ownership, India remains in the early stages of unlocking its full market potential.
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