India’s Used Luxury Car Market To Grow At CAGR Of 16.30% Between 2024 And 2032

The global used luxury car revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.89 per cent, resulting in a projected market volume of $54bn by 2029 from $24bn in 2024.

Meanwhile, luxury cars market unit sales are expected to reach 386.2k vehicles in 2029. The volume weighted average price of the luxury cars market in 2024 is expected to touch $115k. From an international perspective, it is shown that the maximum revenue will be generated in the United States at $seven billion this year.

According to the report, India’s used luxury car market size, aided by increasing disposable incomes, is projected to grow at a CAGR of 16.30 per cent between 2024 and 2032.

The luxury car market in India has been experiencing significant growth over the past couple of years. In 2023, the luxury car segment in India grew by around 20 per cent with the highest-ever sales of around 47,000 cars in a calendar year, showcasing a robust demand despite global economic uncertainties. This evolution is driven by a combination of increasing disposable incomes, rising number of millionaires, and the aspirational value associated with luxury brands.

In 2024, the market is expected to cross 50,000-unit sales. The penetration of luxury cars in India remains very low at a mere per cent compared to other emerging economies like Brazil, Thailand and Indonesia, where luxury car penetration ranges from five per cent to eight per cent. The lower penetration could also signal a future boom in demand for luxury cars in India.

It is quite ironic to use the word ‘affordability’ while talking about luxury cars, but this is one of the primary factors driving the growth of the used luxury car market. Luxury cars depreciate faster than regular cars, making high-end models available at significantly lower prices in the used car market. This allows a broader range of consumers to access these vehicles.

Used luxury cars offer excellent value for money, as the buyers can get a top-tier vehicle with advanced features and superior performance at a fraction of the original price. This makes them an attractive option for value-conscious consumers, who desire luxury without the hefty price tag.

The growing network of certified pre-owned programs by luxury car manufacturers has enhanced consumer trust in the quality and reliability of used luxury cars. These programs offer rigorous inspection processes, warranties, and after-sales services, ensuring peace of mind for buyers.

Audi India sold 3449 pre-owned cars through its Audi Approved Plus showrooms, recording a 62 per cent growth in 2023. Mercedes-Benz India reported 20 per cent growth in the first six months of 2023.

A similar trend is seen in the organized multi-brand dealerships that have started offering warranties and allied services on their used luxury cars.

The aspirational nature of Indian consumers, coupled with the increasing influence of social media and lifestyle trends, has led to a higher demand for luxury cars. Owning a luxury vehicle is often seen as a status symbol, and the used car market provides an accessible entry point.

The digital revolution has significantly impacted the India used luxury car market expansion. Online platforms and digital marketplaces have emerged as crucial channels for buying and selling pre-owned luxury cars. Websites and mobile apps provide detailed listings, high-resolution images, and virtual tours, allowing buyers to explore a wide range of options from the comfort of their homes.

Used car financing, warranties, certification, RSA, etc. have made buying a used luxury car very similar to buying a new car. These services go a long way in building trust and making buying a used luxury car affordable (financing).

Luxury car manufacturers and dealerships are expected to invest more in providing personalized and premium customer experiences, further boosting consumer confidence in the used car market. This is evident from the growing strength of pre-owned car showrooms of the OEMs, like the Audi Approved Plus.

Sustainability is becoming an important consideration for consumers in the India used luxury car market development. The awareness of the environmental impact and the benefits of reusing existing vehicles are encouraging more buyers to consider pre-owned options. By opting for a used luxury car, consumers can enjoy the benefits of a premium vehicle while contributing to the reduction of automotive waste and the carbon footprint associated with the production of new cars. This growing eco-consciousness is aligning with global trends and is expected to further drive the market for used luxury cars in India.

The used luxury car market in India is on a growth trajectory, driven by affordability, value for money, increased consumer trust and evolving consumer behavior.