India's used-car volume is projected to grow 8-10% in 2025-26, outpacing new car sales, driven by rising consumer confidence and digital adoption.
The used car market in India has shown a shift with a used-to-new car sales ratio of 1.4, up from less than 1 five years ago, with estimated market value at around ₹4 lakh crore.
Organised players in the used car segment are facing high operational costs but are expected to reach breakeven at the operating profit level over the next fiscal periods.
Improving access to vehicle finance and integrated service offerings are likely to support the growth of the used car market in India, despite profitability challenges for many players.