Analysis of over 11,000 transactions across nine cities highlights rise of first-time car ownership, rising financing adoption, changing consumer aspirations, and emerging EV resale challenges
Key Findings from the Mobility Intelligence Report 2026
Ownership & Market Growth
– 80–82% of used-car buyers are first-time car owners – India’s used-car market is 1.39x larger than the new-car market – The used-car market is growing at 11–13% annually – The organised used-car segment is growing at over 20% annually
Financing & Affordability
– Used-car financing penetration has doubled from 16% to 32% over the past five years – Nearly 60% of transactions on organised platforms are financed
Consumer Preferences
– SUVs continue to lead aspiration-driven demand across segments – Automatic vehicles account for 37% of transactions, reflecting growing preference for convenience and urban drivability
– One-year-old vehicles depreciate by 21% on average – Three-year-old vehicles depreciate by 33% on average – Five-year-old vehicles depreciate by 41% on average while retaining nearly 60% of their original value
– EV resale remains one of the most significant emerging challenges in India’s mobility ecosystem due to evolving technology, battery-health concerns and limited residual-value benchmarks
NEW DELHI , June 29, 2026 /PRNewswire/ — Autocar India and Spinny today unveiled the Mobility Intelligence Report 2026 , a comprehensive study of India’s evolving used-car ecosystem based on an analysis of more than 11,000 vehicle transactions across nine cities. Combining transaction-led insights with broader market trends, the report offers a detailed view of 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, 80–82% 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 the size of the new-car market , with annual growth of 11–13% . Within this, the organised segment continues to gain share, expanding at more than 20% annually , driven by increasing 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 into how mobility preferences are evolving in India. What makes this report particularly valuable is the breadth of consumer and transaction-led insights it brings together—from ownership trends and financing behaviour to changing vehicle preferences and value retention. As the market continues to mature, such data becomes increasingly important for consumers, manufacturers, financiers and the broader automotive ecosystem.”
Used Cars Become a Vehicle for Aspiration
The report finds that the used-car market is increasingly being driven by aspiration rather than affordability alone. Instead of purchasing entry-level new vehicles, many consumers are opting for larger, better-equipped used vehicles within the same budget.
This shift is most visible in the growing popularity of SUVs, which continue to dominate demand across urban markets. Consumers are increasingly prioritising features, safety, comfort and vehicle size, viewing used cars as an opportunity to upgrade their ownership experience without significantly increasing expenditure.
Financing Accelerates Market Formalisation
Financing has emerged as one of the strongest 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 increasing lender confidence and improving consumer trust in the category. On organised platforms such as Spinny, financed purchases now account for nearly 60% of all transactions .
The findings suggest that easier access to financing is helping expand the addressable market while enabling consumers to purchase higher-value vehicles and accelerate ownership decisions.
Ownership Economics Influence Buying Decisions
The report also highlights a growing awareness among consumers regarding vehicle ownership economics and resale value.
Analysis shows that a one-year-old vehicle depreciates by an average of 21% , while depreciation reaches 33% after three years and 41% after five years . Despite this, a five-year-old vehicle retains nearly 60% of its original value , reinforcing the importance of value retention in purchase decisions.
Notably, the average selling price of a three-year-old vehicle in the study stood at ₹8.38 lakh , roughly comparable to the average price of a new car in India in 2020. This reflects how used vehicles are increasingly enabling consumers to access more premium segments without bearing the steepest years of depreciation.
Convenience-Led Mobility Continues to Rise
Changing urban lifestyles are also influencing vehicle preferences.
Automatic vehicles now account for 37% of transactions analysed in the report, signalling a continued shift toward convenience-led mobility, particularly in densely populated urban centres where traffic congestion remains a key factor influencing consumer choice.
The study also found that brands such as Maruti Suzuki, Hyundai, Kia and Mahindra continue to demonstrate strong value retention across categories. Among individual models, 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 emerged among the strongest performers in retaining value over time.
EV Resale Emerges as the Next Industry Challenge
While the report highlights growing consumer interest in electric mobility, it also identifies EV resale as one of the most significant emerging challenges for the automotive ecosystem.
Unlike internal-combustion vehicles, electric vehicles currently lack predictable resale benchmarks due to rapid technological evolution, concerns around 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 EV adoption in India.
Commenting on the findings, Niraj Singh, Founder and CEO, Spinny , said: “India’s used-car market is undergoing a structural transformation. What was once viewed primarily as a value-driven purchase is increasingly becoming a pathway to first-time ownership, aspirational upgrades and smarter financial decision-making. The findings of the Mobility Intelligence Report 2026 reflect a market that is becoming more organised, more trusted and more accessible. With evolving consumer expectations and aspirations, we believe the used-car ecosystem will play an even greater role in shaping the future of mobility in India.”
Source: PR Newswire
