Rapid Growth in Used-Car Market

The used-car market in India is projected to grow by 8–10% in FY26, outpacing the growth rate of new car sales. Used-car sales volume is expected to exceed 6 million units in FY26, with the used-to-new car sales ratio rising to 1.4 from less than 1 five years ago. The estimated market value of used cars is around ₹4 trillion, nearly matching the value of new car sales. Key factors fueling this growth include affordability concerns, digital platforms, and improved access to financing. Organised used-car players are expected to break even operationally in 12–18 months, but liquidity and funding remain crucial due to ongoing high costs in logistics, refurbishment, and customer acquisition.