Asia-Pacific Used EV Market

Asia Pacific Used Car Market Outlook: Expert View on EV Adoption, Online Platforms, and CPO Growth

“The Asia Pacific used cars market is currently undergoing significant growth, driven by factors such as increased vehicle affordability concerns, advancements in digital transformation, and rising demand from middle-income demographics. Analysts have identified a notable shift towards organized used car platforms, as consumers prioritize greater transparency, warranty-backed vehicles, and digital convenience. Emerging markets such as India, China, and Indonesia are recognized for their potential, with online used car sales in India anticipated to expand at over 4.7% CAGR through 2030.

A prominent trend in this market is the increase in the availability of used electric vehicles (EVs), particularly in China and Japan, supported by government incentives for EV adoption and heightened consumer awareness. Analysts also emphasize the rapid growth of certified pre-owned (CPO) programs, with OEM-backed platforms like Maruti Suzuki True Value and Toyota U Trust earning customer confidence. Furthermore, tier-2 and tier-3 cities are playing a crucial role in driving market volume as internet penetration and access to financing improve.

Cross-border trade, especially imports from Japan, is enhancing the variety and quality of vehicles available. In summary, the Asia Pacific used cars market is transitioning towards a more organized and technology-driven ecosystem, where companies that leverage AI, digital financing, and robust service networks are poised to lead the industry.”

Asia Pacific used cars market was valued at USD 438 billion in 2023 and is estimated to achieve a value of USD 587 billion by 2030 with a CAGR of 4.7% during the forecast period.

The Asia Pacific used cars market is undergoing a significant transformation, expanding rapidly beyond traditional Tier-1 cities and extending its reach into Tier-2 and Tier-3 urban centers. This growth is driven by rising middle-class aspirations, increased digital penetration, and a growing preference for affordable personal mobility. Analysts observe that countries such as India, Indonesia, Vietnam, and the Philippines are experiencing a surge in demand for used vehicles in smaller cities, a trend fueled by post-pandemic behavioral shifts and the increasing availability of digital platforms.

In India, for instance, the used car market surpassed 4.5 million units in FY2023, with nearly 55% of sales originating from Tier-2 and Tier-3 cities, indicating strong rural and semi-urban interest. Online platforms such as Cars24 and Spinny report that approximately 60–70% of online inquiries are now coming from non-metro regions. These areas are benefiting from rapid advancements in digital infrastructure and easier access to financing, facilitating the exploration and purchase of used vehicles online for first-time buyers.

A contributing factor to this market boom is the widening affordability gap between new and used cars. As the average prices for new cars continue to rise, used vehicles often priced 30–50% lower are becoming the preferred option for middle-income households. Additionally, the introduction of certified pre-owned (CPO) programs is bolstering buyer confidence in non-urban areas. Original Equipment Manufacturer (OEM)-backed networks like Maruti Suzuki True Value and Toyota U Trust have aggressively expanded into Tier-2 and Tier-3 cities, offering inspected and warrantied vehicles to first-time buyers.

This expansion is further supported by the rise of non-banking financial companies (NBFCs) and fintech firms that provide flexible used car loans with minimal paperwork. Organizations such as Muthoot Capital and Shriram Transport Finance have developed tailored financial products to cater to the needs of semi-urban and rural markets, significantly improving affordability and ownership rates.

Analysts emphasize that mobile-first digital platforms are central to this transformation. With smartphone penetration exceeding 70% in many Asia Pacific countries, consumers in small towns are now easily accessing used car listings, securing loan approvals, and reviewing vehicle histories.

In summary, the Asia Pacific used cars market is no longer limited to major metropolitan areas. Demand is diversifying across regions, resulting in a more balanced and extensive market. Analyst’s project that the increased activity in Tier-2 and Tier-3 markets will serve as a critical growth engine, potentially