Analysis of over 11,000 transactions across nine cities highlights rising first-time car ownership, growing adoption of financing, changing consumer aspirations and emerging electric vehicle resale challenges Key findings from Mobility Intelligence Report 2026 Ownership and Market Growth – 80% to 82% of used car buyers are first-time car owners – India’s used car market is 1.39 times larger than the new cars – Used car market is growing at 11-13% annually – Organized used car segment is growing at over 20% annually Financing and affordability – Used car financing penetration has doubled from 16% to 32% in the last five years – Nearly 60% of transactions on organized platforms are financed Consumer preferences – SUVs continue to lead aspiration-driven demand across segments – Automatic vehicles account for the 37% of transactions, reflecting a growing preference for comfort and urban drivability Economics of ownership – One-year-old vehicles depreciate 21% on average – Three-year-old vehicles depreciate 33% on average – Five-year-old vehicles depreciate 41% on average, retaining nearly 60% of their original value Future of Mobility: Electric vehicle resale remains one of the most important emerging challenges in the mobility ecosystem of India due to evolving technology, battery health concerns and limited residual value benchmarks NEW DELHI, June 29, 2026 /PRNewswire/ — Autocar India and Spinny today released the Mobility Intelligence Report 2026, a comprehensive study of the evolution of India’s used car ecosystem based on an analysis of over 11,000 vehicle transactions across nine cities. Combining transaction-based insights with broader market trends, the report offers a detailed look at how changing consumer aspirations, ownership patterns, financing adoption and vehicle preferences are reshaping India’s mobility landscape.
The findings highlight the growing importance of the used car market in expanding access to personal mobility. According to the report, between 80% and 82% of used car buyers are first-time car owners, underscoring the category’s role as the primary gateway to vehicle ownership for millions of Indians.
The report comes at a time when India’s used car market is estimated to be 1.39 times larger than the new car market, growing at 11% to 13% annually. Within this, the organized segment continues to gain share, expanding at more than 20% annually, driven by greater trust, transparency and convenience.
Commenting on the report, Hormazd Sorabjee, Editor, Autocar India, said: “The used car market today offers one of the clearest windows on how mobility preferences are evolving in India. What makes this report particularly valuable is the breadth of consumer and transactional insights it brings together, from ownership trends and financial behavior to changing vehicle preferences and value retention. As the market continues to mature, such data becomes increasingly important to consumers. consumers, manufacturers, financiers and the broader automotive ecosystem.” Used cars become a vehicle for aspirations The report reveals that the used car market is increasingly driven by aspirations and not just affordability. Instead of purchasing basic new vehicles, many consumers opt for larger, better-equipped used vehicles on the same budget.
This shift is most visible in the growing popularity of SUVs, which continue to dominate demand in urban markets. Consumers are increasingly prioritizing vehicle features, safety, comfort and size, and view used cars as an opportunity to enhance their ownership experience without significantly increasing spending.
Financing accelerates market formalization Financing has become one of the biggest enablers of growth in the used car ecosystem.
According to the report, used car financing penetration has doubled from approximately 16% to 32% over the past five years, reflecting increased lender confidence and improving consumer confidence in the category. On organized platforms like Spinny, financed purchases now account for almost 60% of all transactions.
The findings suggest that easier access to financing is helping to expand the addressable market while allowing consumers to purchase higher-value vehicles and accelerate ownership decisions.
The economics of ownership influence purchasing decisions The report also highlights a growing awareness among consumers about the economics of vehicle ownership and resale value.
The analysis shows that a one-year-old vehicle depreciates on average by 21%, while depreciation reaches 33% after three years and 41% after five years. Despite this, a five-year-old vehicle retains almost 60% of its original value, reinforcing the importance of preserving value in purchasing decisions.
Notably, the average selling price of a three-year-old vehicle in the study was ₹8.38 lakh, roughly comparable to the average price of a new car in India in 2020. This reflects how used vehicles increasingly allow consumers to access more premium segments without enduring steeper years of depreciation.
Comfort-based mobility continues to increase. Changes in urban lifestyles are also influencing vehicle preferences.
Automatic vehicles now account for 37% of transactions analyzed in the report, indicating a continued shift towards convenience-based mobility, particularly in densely populated urban centers where traffic congestion remains a key factor influencing consumer choice.
The study also found that brands like Maruti Suzuki, Hyundai, Kia and Mahindra continue to demonstrate strong value retention across categories. Among individual models, 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 top performers in terms of value retention over time.
Electric vehicle resale emerges as next industry challenge While the report highlights growing consumer interest in electric mobility, it also identifies electric vehicle resale as one of the most important emerging challenges for the automotive ecosystem.
Unlike internal combustion vehicles, electric vehicles currently lack predictable resale benchmarks due to rapid technological evolution, concerns about battery health, and changing consumer expectations. The report suggests that improving transparency around battery performance, battery health assessment and residual value benchmarks will be critical to supporting the next phase of electric vehicle adoption in India.
Commenting on the findings, Niraj Singh, Founder and CEO of Spinny, said: “India’s used car market is undergoing a structural transformation. What was once seen primarily as a value-driven purchase is increasingly becoming a path towards first-time ownership, aspirational upgrades and smarter financial decision-making. The findings of the Mobility Intelligence 2026 Report reflect a market that is becoming more organised, more reliable and more accessible. With evolving consumer expectations and aspirations, “We believe that the used car ecosystem will play an even bigger role in shaping the future of mobility in India.” (Disclaimer: The above press release comes to you under an agreement with PRNewswire and PTI assumes no editorial responsibility for the same.) ENERGY PTI ENERGY
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This article was published on June twenty-ninth, two thousand and twenty-six, at five forty-seven minutes in the afternoon.
