The used car market in India is showing rapid growth. This market previously operated differently, but the emergence of players like Cars24 and Spinny has significantly transformed its landscape. It is now easier to understand which cars are in demand in the secondary market.
Dominant Market Segments
The country is witnessing active growth in the used car market, with the highest demand concentrated on hatchbacks and SUVs. The SUV segment accounts for about 32% of the market and is gaining popularity. Within the organized used car market, compact and entry-level SUVs are the most sought after.
Popular Models and Statistics
According to Cars24 data, the Maruti Suzuki Baleno is one of the best-selling models, holding a 15.5% market share. Hyundai Grand i10 (13.2%) and Renault Kwid (11.3%) are also popular in the secondary market segment. Among SUVs, the Tata Nexon (11%) and Hyundai Creta (7.1%) are in good demand.
Consumer Preferences by Segment
According to CRISIL, Cars24, and Spinny estimates, hatchbacks remain the most popular choice in the used car market as of the fiscal year 2026. This segment accounts for approximately 46% of the market, especially in second and third-tier cities. SUVs hold the second position with a 32% share. The high demand for hatchbacks is due to them offering many options in the budget class, for example, with a budget under 500,000 rupees. Furthermore, these models are more practical and require less maintenance.
SUV Requirements and Age Preferences
In the used SUV segment, vehicles priced between 5 and 12 lakhs are of greatest interest. Buyers prefer to purchase SUVs aged three to five years, which is linked to the presence of modern features and reliable performance, as well as significant savings compared to buying a new car. Industry forecasts suggest that vehicles aged three to five years constitute about 46% of the entire used car market due to lower initial costs, allowing buyers to get better value, sometimes even with a warranty.
Premium Segment Dynamics
Although sales of premium SUVs lag behind entry-level models, their commercial significance is constantly growing. The SUV segment priced above 12 lakhs is developing dynamically, as consumers increasingly opt for larger and more functionally equipped SUVs.
Expert Opinion on the Market
Avnit Singh Kohli, founder and director of Autobest Imperio, noted that the highest demand in the SUV segment is for compact and entry-level models because they provide an optimal balance between affordability, practicality, and value, and they are the fastest-selling in the organized used car market. He also added that consumers are increasing their budget for purchasing premium SUVs, viewing them as a sensible financial upgrade despite the smaller sales volume in this segment.
Role of Organized Platforms
The rapid growth of the Indian used car market is largely attributed to the emergence of organized pre-owned platforms. These platforms have increased consumer trust through services such as certified inspection, transparent pricing, warranties, and digital financing, which facilitates the purchase of used cars. According to Cars24 data for the fiscal year 2026, over 60% of used cars valued above 7 lakhs are purchased through financing. The ease of obtaining credit allows consumers to buy premium SUVs while still getting greater value compared to purchasing a new car.