Vikram Chopra, Co-Founder and CEO of CARS24 predicts that the Indian used car market will surge to reach the USD 100 billion milestone within the next decade. He attributes this growth projection to rising disposable incomes and the expanding middle class. According to a study conducted by the Gurugram-based online used car marketplace, there's a noticeable shift in market dynamics, with customers increasingly opting for frequent upgrades in their vehicles.
Chopra highlights that the anticipated growth of the Indian used car market is expected to follow a 15 percent Compound Annual Growth Rate (CAGR), rising from USD 25 billion in 2023 to USD 100 billion by 2034. This growth trajectory is fueled by factors unique to the Indian market, including rapid urbanization and the evolving preferences of the middle class, which are driving demand for affordable mobility solutions.
Reflecting on CARS24's journey over the past eight years, Chopra mentions that the used car market has experienced significant acceleration, with the market size growing from around USD 10-15 billion to its current state.
Despite this growth, car ownership in India remains relatively low compared to developed countries like the US, China, and Europe. While 80-90 percent of the population in these regions own cars, only about 8 percent of Indians own a four-wheeler, indicating significant growth potential in the Indian market.
Chopra also notes a notable shift in ownership patterns, with the younger generation opting to sell their cars within 5-6 years of purchase, a stark contrast to the longer ownership periods observed two decades ago. This trend underscores the increasing adoption of used cars among Indian consumers.
