India’s used-car market is now 1.39 times larger than the new-car market and is growing at 11-13% annually, according to the Mobility Intelligence Report 2026 released by Autocar India and Spinny.
The report, based on an analysis of more than 11,000 vehicle transactions across nine cities, said the organised used-car segment is expanding at more than 20% annually, driven by increasing consumer trust, transparency and convenience.
First-time buyers dominate
The study found that 80-82% of used-car buyers are first-time car owners, highlighting the segment’s growing role in expanding access to personal mobility.
“India’s used-car market is undergoing a structural transformation. With evolving consumer expectations and aspirations, we believe the used-car ecosystem will play an even greater role in shaping the future of mobility in India,” Spinny Founder and CEO Niraj Singh said.
Financing gains traction
Used-car financing penetration has doubled from 16% to 32% over the past five years. Nearly 60% of transactions on organised platforms are now financed, reflecting greater formalisation of the market.
The report also found that SUVs continue to dominate aspiration-driven demand, while automatic transmission vehicles account for 37% of transactions as buyers increasingly prioritise convenience and urban drivability.
Value retention trends
Vehicle depreciation remains a key factor influencing purchase decisions. One-year-old vehicles depreciate by an average of 21%, three-year-old vehicles by 33% and five-year-old vehicles by 41%, while still retaining nearly 60% of their original value.
The study noted that electric vehicle resale remains a significant challenge due to evolving technology, battery health concerns and the absence of established residual value benchmarks.
Leading brands
According to the report, Maruti Suzuki, Hyundai, Kia and Mahindra continue to demonstrate strong value retention across categories.
Among individual models, the Maruti S-Presso, Hyundai Grand i10 Nios, Maruti Baleno, Maruti Dzire, Hyundai Verna, Tata Punch, Hyundai Venue, Kia Seltos, Mahindra XUV700 and Maruti Ertiga emerged among the strongest performers in retaining value over time.