VIDEO: India To Become World’s 3rd Largest Used Car Market By 2031 | Redseer Report Decoded

In this exclusive conversation with Autocar Professional, Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants, unpacks the findings of Redseer’s latest report on India’s used-car market and the structural shift now underway. India’s used-car market is projected to reach USD 68-78 billion and 9-10 million units by FY31, growing at 14-18% CAGR and overtaking the UK to become the world’s third-largest used-car market.

Kushal explains why India is the fastest-growing among the leading used-car markets globally, and why the used-to-new ratio at 1.4x still leaves significant headroom compared to mature markets at 2-3x. The conversation covers the six core demand drivers reshaping the segment, a 50 million-plus car parc by FY31, shortening replacement cycles from 7-8 years to 4-5 years, premiumisation, rising household incomes, deeper financing penetration, and digital adoption. Kushal also addresses why 65% of used-car buyers are first-time owners, and how this is redefining the category from a compromise purchase to a prudent financial choice.

Most critically, Kushal breaks down the trust deficit holding the market back, with ~80% of transactions still flowing through the unorganised channel, NPS scores below 30%, and only ~40% of buyers actively recommending their purchase. He outlines how full-stack operators are positioned to scale to 5–6% market share and unlock USD 4 billion by FY31, with metros leading the shift.

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