Overview

Autocar India and Spinny announced the Mobility Intelligence Report 2026, a study of India’s used‑car ecosystem based on analysis of more than 11,000 vehicle transactions across nine cities.

Market Size and Growth

  • The used‑car market is estimated to be 1.39 times larger than the new‑car market and is expanding at an annual rate of 11‑13 %.
  • The organised segment of the used‑car market is growing at over 20 % per year, driven by greater trust, transparency and convenience on platforms such as Spinny.

Ownership Patterns

  • First‑time car owners account for 80‑82 % of all used‑car buyers, indicating that the segment serves as the primary entry point to vehicle ownership for millions of Indians.
  • Consumers are increasingly opting for aspirational models, especially SUVs, rather than entry‑level new cars, to obtain higher‑specification vehicles within the same budget.

Financing Trends

  • Financing penetration in the used‑car space has doubled from roughly 16 % five years ago to 32 % today.
  • On organised platforms, financed purchases represent nearly 60 % of all transactions, enabling buyers to acquire higher‑value vehicles and accelerate ownership decisions.

Depreciation and Value Retention

  • Average depreciation rates are 21 % after one year, 33 % after three years and 41 % after five years.
  • Despite a 41 % depreciation, a five‑year‑old vehicle still retains about 60 % of its original price.
  • The average selling price of a three‑year‑old vehicle in the sample was ₹8.38 lakh, comparable to the average new‑car price in India in 2020.
  • Brands such as Maruti Suzuki, Hyundai, Kia and Mahindra demonstrated strong value retention, with models like the Maruti S‑Presso, Hyundai Grand i10 Nios, Maruti Baleno, Maruti Dzire, Hyundai Verna, Tata Punch, Hyundai Venue, Kia Seltos, Mahindra XUV700 and Maruti Ertiga among the top performers.

Vehicle Preference Shifts

  • Automatic transmission vehicles accounted for 37 % of the transactions analysed, reflecting a growing preference for convenience‑led mobility in congested urban areas.

Emerging EV Resale Challenge

  • The report identifies electric‑vehicle resale as a significant upcoming challenge due to rapid technology evolution, battery‑health concerns and the absence of reliable residual‑value benchmarks.
  • Improving transparency around battery performance and establishing standardised resale benchmarks are deemed critical for supporting broader EV adoption.

Comments

  • Hormazd Sorabjee, Editor of Autocar India, highlighted the report’s value in revealing how mobility preferences are evolving and its relevance for consumers, manufacturers, financiers and the broader automotive ecosystem.
  • Niraj Singh, Founder and CEO of Spinny, described the used‑car market as undergoing a structural transformation from a purely value‑driven purchase to a pathway for first‑time ownership, aspirational upgrades and smarter financial decisions.