India’s mobility landscape has entered a transformative phase—driven by affordability, digital trust, and aspirational ownership. Among the fastest-growing segments, the used car market has emerged as a beacon of both innovation and opportunity. Once considered fragmented and informal, this sector is now evolving into a structured, digitally enabled ecosystem, having transacted over 50 lakh units in fy 2024-25.

As a key enabler of this transformation, Shriram Automall has had a front-row seat to this evolution—and continues to play a pivotal role in driving the momentum forward.

A rapidly expanding market

According to siam, India sold approximately 43 lakh new cars in fy 2024-25, reflecting a cagr of 9% since fy 2019-20. However, the journey has not been linear. The Indian car industry has weathered multiple headwinds in the past five years—from economic slowdowns to supply chain disruptions—but continues to demonstrate resilience and growth.

In comparison, the used car market has outpaced new car sales, with an estimated 1.2 used cars sold for every new car purchased. This translates to over 51 lakh used car transactions in fy 2024-25—signifying a substantial shift in consumer preferences toward value-driven pre-owned mobility.

Several factors are contributing to this shift:

• Rising affordability
• Improved vehicle quality
• Broader access to digital platforms
• Increased trust in organized players

Market forecasts remain optimistic. Multiple industry studies estimate a cagr of 10–15% for the used car segment. At this pace, the volume of used car transactions in India is expected to double by 2030.

Supporting this outlook, markntel advisors predict that India will cross 1 crore used car transactions annually by 2030, up from 5 million units in 2023.

"The numbers speak volumes—not just about market size, but about changing perceptions. A used vehicle is no longer a compromise; it’s a smart decision," the company remarks.

What’s fuelling the surge?

Following are the driving points behind this incredible surge in the used car sector of India:

1. Democratised car ownership

India’s rising middle-class and improved credit availability are bringing first-time buyers into the fold. A study by the people research on India’s consumer economy (price) suggests the middle-class segment is expected to expand from 31% in 2020 to over 60% by 2047. This directly feeds into the used car market, where affordability and accessibility matter the most.

2. Digital integration at scale

The used car journey has gone digital—smoothly and successfully. According to autocar professional (2025), 77% of used car transactions are now influenced or completed online, a jump from 70% in 2023. Women buyers now constitute 28% of online used car purchases, while 74% are first-time buyers, highlighting trust and convenience.

Samil, through platforms like cartrade exchange and adroit auto, has contributed to this shift by offering transparent, technology-driven vehicle inspections, digital auctions, and post-sale services. Together, these innovations are ensuring seamless transactions between b2b and b2c stakeholders.

"The merging of physical inspection capabilities with digital convenience has fundamentally reshaped buyer confidence," samil notes.

Samil’s role in this evolution

Having pioneered India's first professionally managed physical auction platform, samil today operates 135+ automalls across the country. These serve as regional hubs where buyers can inspect, evaluate, and bid on pre-owned vehicles — be it passenger cars, two-wheelers, commercial vehicles, or equipment.

Since its incorporation, Shriram Automall facilitated the sale of more than 23.5 lakh vehicles, including 4.85 lakh plus four-wheelers. This dominance extends beyond transactions—Shriram Automall’s 650+ physical and 5000+ online auctions per month and robust inspection and valuation services through adroit auto have reinforced buyer confidence, particularly in tier-2 and tier-3 cities.

The certified & luxury segment upswing

As per mordor intelligence, India’s certified used car market is growing at 20%+ cagr, driven by demand for assured quality and warranty-backed deals. Interestingly, luxury pre-owned vehicles have also seen double-digit growth, with urban professionals and aspirational millennials seeking value-for-money upgrades.

Samil’s vehicle certification offerings via adroit auto and inspection support across oem and banking partners are helping build confidence in this evolving buyer base.

“Trust is no longer optional—it’s the currency of the pre-owned automobile business,” samil affirms.

What's next?

• Electric vehicles: with ev penetration on the rise, pre-owned evs are emerging as a promising sub-segment. samil is actively working to align with this next wave.
• Semi-urban growth: regions like Uttar Pradesh, Maharashtra, and Tamil Nadu are leading the way in tier-2 and tier-3 expansion, contributing over 30% of national used vehicle volumes.
• Institutionalisation: banks, nbfcs, and leasing companies are increasingly leveraging platforms like samil to dispose of assets efficiently—helping reduce npas while improving resale recovery.

Closing thoughts

India’s used car industry’s journey has been nothing short of extraordinary. But what’s even more inspiring is how the market has matured—becoming more inclusive, transparent, and technology-first.

As a long-standing facilitator of this ecosystem, samil remains committed to empowering every buyer and seller with the tools, transparency, and trust needed to navigate the road ahead.

"For us, it’s never just about selling vehicles. It’s about enabling affordable mobility, facilitating financial inclusion, and unlocking value for every stakeholder in the chain.”