Archive · 13 Jan 2026
SUVs Dominate Resale Market Despite GST Adjustments
In India, people are still buying more SUVs than small cars in the used-car market, even after the GST changes.
SUVs are selling faster and keeping their value better than small cars.
This is because people like the space and comfort that SUVs offer.
In big cities, people are buying newer, more feature-packed cars, while in smaller cities, they prefer SUVs and MPVs for family and business use.
The GST changes have made some used cars cheaper, but SUVs are still popular.
More people are also buying used luxury cars because they offer good value and are available quickly.
SUVs dominate the used-car market in India, maintaining faster inventory turnover and stronger residual values.
Hatchbacks saw a 21% price adjustment, while SUVs had a 29% adjustment post-GST.
Buyers prefer SUVs for their space, comfort, and road presence, especially in metros.
Price adjustments vary by geography, with top 30 cities seeing a 28% adjustment compared to 17% in smaller markets.
Younger buyers in metros are opting for near-new vehicles with modern features, while tier-II and tier-III cities prefer rugged SUVs and MPVs.
- Who
- Used-car buyers in India
- What
- SUVs dominate the resale market despite price adjustments
- When
- Post-GST regime
- Where
- India, with variations between metros and smaller cities
- Why
- Buyers prefer SUVs for space, comfort, and road presence
- SUV Inventory Turnover
- Faster
- SUV Residual Values
- Stronger
- Hatchback Price Adjustment
- 21%
- SUV Price Adjustment
- 29%
- Top 30 Cities Price Adjustment
- 28%
- Smaller Markets Price Adjustment
- 17%
- Used-Car Traffic in Metros
- 80%
- Average Ownership Cycle
- 6.5 to 7 years