Mumbai, May 23, 2024 – According to the latest edition of the Indian Blue Book (IBB) report, preowned car sales in India are projected to reach 10.92 million units by the fiscal year 2028 (FY2028). The Indian used car industry, currently valued at USD 32.44 billion in FY2023, is expected to more than double to USD 73 billion by FY2028.

The report, a collaborative effort between car&bike (a subsidiary of Mahindra First Choice Wheels) and Das WeltAuto. by Volkswagen, highlights several key trends shaping the preowned car market in India:

Key Findings:

• Upgrading to a newer pre owned car is the top reason for owners to sell their vehicles, while budget-conscious buyers are predominantly looking for quality cars.
• 71 percent of buyers consider the make, model, and variant as a significant factor in their purchasing decision, indicating increased consumer awareness of car technicalities.
• Safety features are emerging as a priority, with 45 percent of buyers/intenders preferring to explore options through local dealers, followed by auto tech startups (26 percent) and OEM-backed brands (23 percent) like Volkswagen.
• While 28 percent of buyers are aware of car leasing, 62% express interest in availing this service in the future.
• Warranty and financial assistance remain top demands from buyers in terms of services.
  Interestingly, a majority (56 percent) of buyers do not prefer to purchase a used electric vehicle (EV).

 From the sellers’ perspective, the report found that upgrading to a newer preowned car is the top reason for 59 percent of respondents, followed by the sufficiency of having another vehicle, as some extra cars purchased during the COVID-19 pandemic are now being sold.

“The preowned car market in India is experiencing significant growth, with the potential to double in size by FY2028,” said Mr. Ashish Gupta, Brand Director, Volkswagen Passenger Cars India. “The evolving trends and customer preferences, particularly the increased focus on safety features, are positively impacting the residual value of Volkswagen cars, especially the Taigun model.”

The Indian Blue Book, launched in 2015 by Mahindra First Choice Wheels, has become a leading source of insights into the used car industry in India. Since 2022, the report has been co-curated by Das WeltAuto, Volkswagen’s pre owned car brand, and car&bike.