India’s Used-Car Market Set to Surpass Six Million Units

Crisil Ratings projects that India’s used-car market will exceed six million units this year, growing more than twice as fast as the new-car segment. This boom is being fueled by price-conscious buyers, streamlined online transactions, and innovative financing solutions tailored for pre-owned vehicles.

Digital marketplaces such as OLX Autos and Cars24 are playing pivotal roles, offering features like certified inspections, warranties, and transparent pricing—all of which enhance consumer trust. Financing partners are responding with specialized loans and insurance provisions, signaling wider sectoral momentum. This evolving ecosystem benefits manufacturers too, who increasingly view certified pre-owned programs as a strategic avenue to boost brand loyalty.

Such expansion, however, could pose long-term pressure on new vehicle sales—potentially prompting OEMs to pivot toward subscription services or introduce affordable, entry-level models. Policymakers may also need to revisit regulations around vehicle emissions and safety standards within the resale domain.