India used car market projected to reach USD 82.88 billion by 2031

The used car market in India is experiencing a significant shift toward value-driven ownership, with the sector estimated to reach USD 82.88 billion by 2031. This growth is driven by rising new car prices, digital discovery, and a consumer focus on practical mobility for commuting, family travel, and business needs.

Crisil expects used-car volumes in India to grow by 8-10% in FY26. This trend is supported by improved access to financing, such as pre-owned car loans, which allow buyers to manage costs through structured monthly repayments. While interest rates for used vehicles—often ranging between 12% and 14.5%—are typically higher than new car loans due to depreciation and risk profiles, they provide a more affordable entry point for first-time buyers and growing families.