FY26 outlook sluggish for used cars

Slowdown

- NITIN KUMAR

INDIA'S SECOND-HAND car market is expected to slow down in FY26 with industry executives projecting single-digit growth of 8-9%, lower than the 10-12% compound annual growth rate (CAGR) reported in the last few years.

The possible loss of momentum is being attributed to the sluggish sales of new cars; supply constraints could affect the pre-owned market, they point out.

Vineet Tripathi, chief business officer at Rupyy, a digital lending platform from the CarDekho Group, observed that if customers stop upgrading to new cars, supply constraints will eventually catch up.

The market for pre-owned cars was estimated at around 5.5 million units in FY25 and the numbers are expected to hit 6 million units this year.