Premium Cars, AI, and Non-Metro Buyers Power India’s Booming Pre-Owned Car Market: Indian Blue Book FY25

India’s pre-owned car market has entered a new growth phase, driven by premiumisation, digital adoption, and rising demand from non-metro regions. According to the 7th edition of the Indian Blue Book (IBB) — jointly developed by car&bike by Mahindra First Choice and Volkswagen Pre-owned Certified — the used car market touched 5.9 million units in FY24–25 and is projected to expand at a 10% CAGR, reaching 9.5 million units by 2030.

The report captures a fundamental shift in consumer behaviour — from affordability to aspiration. SUVs, particularly compact ones, are increasingly preferred by even budget-conscious buyers. Brand loyalty is strengthening, with 42% of consumers willing to repurchase the same brand, while non-metro buyers are emerging as a key growth driver. Nearly 68% of buyers outside major cities plan to buy a pre-owned car again, underscoring the potential for organised players to expand beyond urban markets.

“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,” said Mohammed Turra, MD & CEO, Mahindra First 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.”

Also Read: Second-Hand, Smart Move? How the Used Car Market Offers Better ROI | Republic World

The IBB survey highlights the dominance of organised dealerships, with over 70% of respondents saying they trust organised players for better service, quality, and fair pricing. Cars aged 4–7 years make up 30% of organised transactions, while warranty coverage has become a top priority for 66% of buyers.

Technology is reshaping the pre-owned car ecosystem. AI-based tools currently influence around 6% of purchases, but adoption is set to surge as generative AI enhances research and buying experiences for digital-first consumers. Gen Z buyers, the report notes, increasingly value safety, design, and long-term reliability over price alone.

With government initiatives such as the vehicle scrappage policy and rising acceptance of certified programs, India’s pre-owned car market is evolving into a more transparent, sustainable, and tech-driven ecosystem — a sign that used cars are no longer just a budget option, but a lifestyle statement.