More older cars, growing markets – Markets of More Old Cars are Increasing Market
In the year 2025-26, sales of old cars can overtake new cars. Inside the industry sources said that the average price of sales of old cars is also increasing due to increasing demand.
The country’s old cars market is growing at the rate of 10 to 12 percent continuously during the last two to three years. It is expected that it will increase to $ 40 billion in FY 26. This means that the sale of old cars in terms of number is expected to range from 65 lakh to 70 lakhs. This information has been given by Neeraj Singh, founder and Chief Affairs Officer of Spini, the leading platform of old cars. Currently, the domestic market of new cars is expected to be around $ 43 billion.
This increase will also promote increase in other areas like tires, finance providing finance. In the year 2023-24, the market of new cars reached the historic height of 42 lakh trains and this year it is expected to remain flat. FY 26 is expected to increase the sales of new cars from one to two percent or reach about 45 lakh to 46 lakh vehicles. In contrast, there is a strong growth in the market of old cars in cities like Bangalore, Hyderabad and Pune, where the highest increase has been seen recently.
Singh says that he sees a good increase in the market during the next seven to eight years of annual compound rate (CAGR) of 12 to 13 percent. Singh told Business Standard, ‘Bangalore, Hyderabad and Pune have recently seen the most increase in markets. In terms of prices, cars (especially compact SUVs) with a range of six to eight lakh rupees have gained the highest bounce which depends on many reasons such as their performance, location, their price and attraction of ‘big cars’.’
This enthusiasm of demand has also increased the average price of sales of old cars in the country. Singh explains, “The average price of sales of old cars in India is between Rs 4.5 lakh to Rs five lakh, which is increasing and has increased by 10 to 15 percent during the last two to three years.”
The prices of budget cars (a radius of three to five lakh rupees) have increased by 10 to 12 percent. The prices of mid-range vehicles (within the radius of five to 10 lakh rupees) have seen an increase of 14 to 16 percent.
The model of premium and SUV has increased the fastest growth. Due to high demand and limited supply, they have increased by up to 20 percent. Another factor promoting the growth of old cars is that the average duration of ownership has decreased.
First Published – March 23, 2025 | 9:49 pm IST
