India Used Car Market Growth
Analysis based on 6 articles · First reported Jul 11, 2025 · Last updated Jul 13, 2025
The robust growth in India's used car market, as reported by S&P Global — CRISIL Ratings, indicates a significant shift in consumer behavior and presents opportunities for automotive and financial service sectors. While organized players face initial profitability challenges due to high operational costs, strong revenue growth is expected to lead to breakeven, potentially attracting further investment and consolidation in the sector.
S&P Global — CRISIL Ratings Ratings reported that India's used car market is experiencing a structural shift, with sales volume expected to exceed 6 million units this fiscal year, growing 8-10%. This growth is more than double that of new car sales, pushing the used-to-new ratio to 1.4. The market value of used cars is estimated at ₹4 lakh crore, nearly matching new car sales. Factors driving this trend include value-conscious demand, increased digital adoption, and better access to finance, supported by AI-driven underwriting. Despite high operational costs for organized players in refurbishment, logistics, and financing, strong revenue growth is anticipated to lead to operating breakeven within 12-18 months. The report highlights that India's used-to-new car sales ratio still lags behind mature markets like the United States, United Kingdom, Germany, and France, indicating significant future growth potential. Anuj Sethi and Poonam Upadhyay of S&P Global — CRISIL Ratings Ratings provided insights into these trends.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard