Used-car market poised for double-digit growth this festive season

The Indian used-car industry is bracing for a strong festive season, with major organised players forecasting growth of 25-30 per cent during the quarter, a sharp acceleration from baseline market projections. The uptick is being driven by a confluence of factors, including robust demand from rural regions, an expanding pool of first-time buyers, and growing consumer appetite for sport utility vehicles and premium segment cars.

Rural markets are emerging as a key growth engine for the used-car segment, as improving agricultural output and rural incomes bolster purchasing power beyond urban centres. Simultaneously, first-time car buyers are increasingly turning to the pre-owned market as a cost-effective entry point into vehicle ownership, particularly as new-car prices remain elevated.

The shift in consumer preferences towards SUVs and luxury vehicles is also reshaping the used-car landscape. These segments have historically commanded stronger resale values and appeal to buyers seeking both functionality and aspirational value, particularly during the festive period when discretionary spending typically peaks.

Organised players in the used-car market are positioning themselves to capitalise on the seasonal momentum, which traditionally sees heightened consumer spending and financing availability. Industry analysts note that the festive-quarter performance could set the trajectory for the broader used-car market recovery through the financial year.