Used Car Sales Set to Skyrocket 8-10% in FY’26: Is This the Next Big Boom?
Used car sales to jump 8-10% in FY’26, hitting 6M units, fueled by digital platforms and financing.
The used car market in India is gearing up for a massive surge, with sales volumes projected to climb 8-10% in the 2025-26 fiscal year, according to a sizzling new report by Crisil Ratings. Buckle up—this booming sector is expected to hit a staggering six million units this fiscal, fueled by soaring digital adoption and easier access to financing.
A Thriving Market
The used car market, now valued at a jaw-dropping ₹4 lakh crore, is outpacing new car sales. The ratio of used-to-new car sales has jumped to 1.4 from less than 1 in just five years, signaling a seismic shift in consumer preferences. Even during the pandemic and semiconductor shortages, the used car segment held strong, showcasing its resilience.
Organized Players in the Driver’s Seat
Organized players are revving up their operations, investing heavily in refurbishment, logistics, and financing to capture this growing market. While these expansions have led to cash losses due to high operational costs, Crisil predicts strong revenue growth will push these companies to break even at the operating profit level in FY’26 and beyond.
Funding the Future
Since FY’19, organized players have raised a whopping ₹14,000 crore through equity to fuel their growth. However, their credit profiles will hinge on timely fundraising and maintaining robust liquidity to keep the momentum going.
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