New Delhi, Jan 23 (IANS): The used car market in India is projected to grow from 4.6 million sales in 2023 to 10.8 million by 2030, cruising ahead with an impressive compound annual growth rate (CAGR) of 13 per cent, according to a report on Thursday.

2024 emerged as a milestone year where used-car sales dominated new car sales with a remarkable ratio of 1.3:1.

The used-car market trends witnessed an increase in eco-conscious buyers as EV sales increased 5X in 2024 with Maharashtra, Karnataka, and Delhi leading the charge.

Continuing the momentum from 2023, SUVs continued to dominate the market share with 16.7 per cent in 2024, according to a CARS24 report.

“The once niche pre-owned car market has taken by storm and redefined car ownership in India. As the customer preferences change for more affordable and dependable options, the used-car market is witnessing an uptick vis-a-vis the new car market,” said Gajendra Jangid, Co-founder of CARS24.

Notably, the average selling price (ASP) of new cars continues to climb, further widening the gap between the ASP of new and used cars.

New car ASPs have seen a 32 per cent surge, while used cars experienced a 24 per cent increase.

Despite this upward trend in prices, used cars remain the more accessible and budget-friendly choice for buyers, offering unmatched value without compromising on quality, said the report.

According to the report, financing for new cars has seen significant growth, climbing from 60 per cent in 2010 to an impressive 84.2 per cent in 2024, highlighting the increasing consumer reliance on loans for vehicle ownership.

Similarly, the used-car financing market has also made strides, rising from 15 per cent to 23 per cent during the same period.

“The post-Covid era has seen a significant shift in consumer preferences, with 12 per cent of car buyers prioritising personal mobility for convenience and safety over shared transportation,” said the report.