Cars24’s nationwide data footprint enables a granular, state-by-state understanding of India’s used car market, helping capture how demand is evolving beyond traditional hubs. Their data from 2025 highlights a clear regional skew in India’s used car market. Demand is not evenly spread but concentrated at the state level, with the South and West emerging as the country’s strongest used car markets. North India continues to consolidate demand across major consumption hubs, while Eastern states, though contributing a smaller share, show stable and sustained transaction activity.
South India Emerges as India’s Largest Used Car Market
At a regional level, Cars24’s data shows a clear concentration of demand in the southern and western parts of the country. South India emerged as the largest contributor to used car demand in 2025, accounting for approximately 41.5 percent of total transactions. Karnataka, Tamil Nadu, Telangana, and Kerala together formed this southern cluster.
- Karnataka alone contributed 16.5 percent of national demand
- Tamil Nadu followed with a 12 percent share,
- Telangana contributed 10.1 percent.
- Kerala added a smaller but steady 2.9 percent.
Taken together, Cars24 data shows that more than four out of every ten used cars sold in India in 2025 were transacted in South India alone.
West India Follows Closely, Driven by Two High-Volume States
West India closely followed South India in overall contribution. According to Cars24’s data, western states accounted for roughly 34.2 percent of used car demand in 2025.
- Maharashtra emerged as the single largest state contributing to 20.7 percent of the total national used car demand
- Gujarat added another 13.5 percent, placing it among the top three states nationally.
Cars24’s data indicates that more than one-third of all the used car transactions in India originated from western states, underlining the region’s importance as one of India’s most active used car markets.
North India Holds a Strong Share, With Large States Driving Volumes
North India also remained a major contributor, accounting for approximately 24.8 percent of used car demand when key northern states are combined.
- Uttar Pradesh contributed 13 percent,
- Delhi contributed 6 percent
- Haryana added 5.8 percent
Cars24 data shows that nearly one in every four used cars sold in India in 2025 came from North India, making it a significant demand region even as shares have redistributed over time.
East India Remains a Smaller but Steady Contributor
East India, in contrast, contributed a smaller share. Cars24 data shows that West Bengal accounted for around 2.5 percent of total used car demand in 2025.
While scale in this region remains limited relative to others, Cars24’s data shows that transactions have remained stable, making it a consistent part of the national used car ecosystem.
Zooming In: The States Powering India’s Used Car Demand
Beyond regional aggregates, Cars24’s 2025 data shows that India’s used car market is shaped by a handful of high-volume states. Demand within each region is concentrated in specific state markets that now define overall scale and momentum.
Top 10 States Powering India’s Used Car Demand
Position | State | 2025 share | 2024 share |
1 | Maharashtra | 20.7% | 16.4% |
2 | Karnataka | 16.5% | 10% |
3 | Gujarat | 13.5% | 8.7% |
4 | Uttar Pradesh | 13% | 11.7% |
5 | Tamil Nadu | 12% | 6.1% |
6 | Telangana | 10.1% | 5.4% |
7 | Delhi | 6% | 13.8% |
8 | Haryana | 5.8% | 10.7% |
9 | Kerala | 2.9% | 3.3% |
10 | West Bengal | 2.5% | 3.1% |
Maharashtra Pulls Ahead as India’s Largest Used Car State
Looking at individual states, Maharashtra emerged clearly at the top. With 20.7 percent of total demand, Cars24 data shows that more than one-fifth of all used cars sold in India in 2025 came from Maharashtra alone.
Karnataka followed with a 16.5 percent share, firmly establishing itself as a top-tier market. Gujarat ranked third with 13.5 percent, while Uttar Pradesh followed closely at 13 percent. Tamil Nadu’s contribution stood at 12 percent, and Telangana crossed into double digits with a 10.1 percent share.
These six states together accounted for a majority of India’s used car demand, highlighting how concentrated the market has become at the state level.
Delhi and Haryana See a Shift in Share but Remain Key Markets
Delhi and Haryana formed the next layer, contributing 6 percent and 5.8 percent respectively. Kerala and West Bengal remained smaller markets with 2.9 percent and 2.5 percent shares.
According to Cars24’s data, this distribution shows a market that is no longer dependent on one or two legacy hubs but spread across multiple large and mid-sized state markets.
Conclusion: What Cars24’s Data Reveals About India’s Used Car Market
Cars24’s 2025 data underscores a clear shift in how India’s used car market is shaping up, one that is increasingly defined by state-level concentration rather than broad, uniform growth. Demand today is anchored in a handful of large, high-activity states, with South and West India together accounting for the majority of transactions, while North India continues to serve as a critical consolidation zone led by NCR and Uttar Pradesh. Smaller eastern markets, though limited in scale, add stability to the national ecosystem.
This concentration reflects deeper structural changes in India’s automotive landscape, including
- Rising vehicle ownership in urban and semi-urban centres,
- Faster replacement & upgrade cycles
- Growing consumer comfort with digital used car transactions.
As the market matures, the data suggests that regional and state-level performance, rather than national averages, will increasingly define growth trajectories.
For industry stakeholders, policymakers, and consumers alike, Cars24’s nationwide data and operating scale offer a credible lens into where demand is strongest today and how India’s used car ecosystem is evolving beyond traditional hubs.
Note: The Cars24 Used Car Market Report 2025 is based on aggregated, anonymised transaction trends observed across Cars24’s pan-India used car marketplace.
