As more and more people look at used cars in the wake of the exorbitant new car prices, the prices of used cars in India seem to exceed in speed than the period rise in new car prices. This is despite the fact that interest rates on funding availed for used cars is often much higher than what is availed for new cars. 

Despite the used car interest rates above 12-13 percent as compared to new car interest rates, which are in the region of six to seven percent, many used car buyers of vehicle that are less than four years of age are opting for finance as they find these vehicles of better value, mentioned an industry source. 

They seem to be less deterred by the fact that used car prices are rising faster than the new car prices owing to the fact that there is more demand than supply in the case of some of the fast-moving models, he added 

With the festive season a month or two away, automakers are busy working on new, exciting cars and SUVs. They are unveiling them in the run up to a commercial launch around Dusshera. 

Another round of price hike is expected at that time in the case of new cars, the source claimed. It is usually the third quarter when the automotive market experiences good traction, he informed. 

On the used car front, monsoon is a dull season followed by an exciting festive season. What is however surprising is the amount of price movement in the used car market in the monsoon season. There is a good deal of volatility in the used car market, mentioned an owner of a used car showroom in Mumbai. 

Good cars bought just before Covid-19 or after it are starting to visit the used car market but their supply – that of some models – is far less than the demand. This is leading to higher asking rates for them at used car outlets. The ripple effect is, cars in the same segments or even others see a demand and hence a price increase as buyers turn their attention to them, he explained. 

If the Volkswagen Polo GT TSI is maintaining its price in the used car market closer to the new car price, consider the 2019 petrol Polo on sale at a used car dealership in central region of Mumbai. At a dealer with good capital investment and years of experience in this business, albeit at the unorganised end of the market, the respective car with about 39,000 km on the odometer is priced at INR 550,000. 

A 2019 petrol Polo with the same colour and the same trim level is priced at INR 500,000 with a used car dealer in Than. It is run 27,000 km and is also a first owner vehicle.

The trend indicates market volatility and also highlights the unorganised nature of the used car market. Prices here are subject to what is available in the market in what quantities and how or what kind of demand there is for those models in the market. 

In the last few weeks, I have observed that the used car market has steadily move up in terms of the prices of cars it sells. It seems to rise faster than the prices of new cars are rising at this moment in time. 

For those who seek their first set of wheels are keen to polish their driving skills, there are hardly any cars that cost less than INR 100,000. Those that are available are either third or fourth owner ones. They come across as either abused or on an extended lease of life post the fifteen-year period. In Delhi NCR, the rule that petrol cars of more than 15 years of age and diesel cars of more than 10 years of age cannot ply in the respective region means used car prices are higher. The balancing bit is the total car parc in that region. 

Citing the example of a first owner 2009 Toyota Corolla Altis with about 120,000 km on the odometer priced at roughly INR 160,000 with a dealer in a Mumbai suburb, a source aware of how the automotive market functions, showed the same being advertised by another used car dealer in the same suburb at INR 225,000! How can a price rise of the same car rise like this in a week’s time? he questioned. 

Terming such developments and the high prices quoted by organised players such as CARS24 or Spinny for the cars that offer an indication of demand outpacing supply, the source mentioned that there is an amount of volatility in the market and it would serve to look for a good car, get it checked thoroughly and exercise a lot of patience to get a good deal. 

Referring to reports by some organised players in the used car market stating that the first quarter of the current fiscal has seen good traction as salaried professionals in bigger and smaller cities turn to used cars after getting a bonus or an increment, the source averred that they ought to be careful when making such a purchase. 

A limited information about a car on the used car market or the lack of transparency of the dealer offering it, are some the big risks involved, he quipped. Irrespective of whether the used car outlet belongs to an organised player or is a stand-alone unorganised enterprise, the risk of buying a used car pertains to the credibility of such a business, how sincere the dealer is in stating information about the car, its papers and service history. In the case of high value purchases, many buyers are known to arrange for a check-up with the dealership to get a good idea about the ‘real’ condition of the vehicle at a certain fee. 

But at the lower price band of the used car market, such a facility is often not available. While entities like Zekardo offer new car inspection and report in view of the investment being made, there is none who could di the same in the used car market. 

With prices moving up smartly – a 2006 WagonR of good condition is priced at INR 140,000 by a dealer in Mumbai – in the used car market in India even for cars that are over 15 years old and leading their first, second or even third ‘green tax extension, the market does look to be quite volatile and overpriced. 

Mumbai-based automotive major Mahindra & Mahindra has announced its wholesales for April 2025 at 84,170 vehicles, a growth of 19 percent, including exports.

The auto major sold a total of 52,330 SUVs in the domestic market, which was 28 percent higher than 41,008 SUVs sold for the same period last year. Commercial vehicle sales in the domestic market came at 22,989 units, which was 4 percent YoY. 

Veejay Nakra, President, Automotive Division, Mahindra & Mahindra, said, “Building on the strong momentum of last year's performance, we began the year on a strong note in April by achieving SUV sales of 52,330 units, a growth of 28 percent and total vehicle sales of 84,170 units, a 19 percent growth over the same month last year. These numbers indicate the strength of our portfolio and customer offerings.”

JSW MG Motor India, a leading passenger vehicles manufacturer, has announced its wholesales for April 2025.

The company reported sales of 5,829 units, which was 23 percent higher over April 2024, when it sold 4,725 vehicles.

Interestingly, the automaker's popular offering, the Windsor EV, has continued to be the top-selling electric passenger vehicle for the seventh month in a row.

JSW MG Motor India's Windsor EV has now gone home to over 20,000 customers.

Maruti Suzuki India, the country’s largest carmaker, has reported its wholesales of 179,791 units in April 2025, marking a 7 percent increase compared to 168,089 units sold in April 2024. The growth was primarily propelled by strong performance in utility vehicles and a sharp rise in export volumes.

Domestic sales, including passenger and light commercial vehicles, remained flat with 142,053 units, as compared to 140,448 units in April 2024. Within this, light commercial vehicles (LCVs) like the Super Carry saw a significant jump of 34.2 percent, with sales rising to 3,349 units from 2,496 units last year.

In the passenger vehicle segment, SUVs such as the Brezza, Ertiga, Grand Vitara and others recorded a 4.4 percent increase, selling 59,022 units compared to 56,553 in the previous year. However, sales for Eeco declined by 5.2 percent, while the mini segment (Alto, S-Presso) saw a sharp 45 percent drop, falling to 6,332 units from 11,519 units. The compact segment, which includes high-volume models like the Baleno and Swift, grew by 8.1 percent, reaching 61,591 units.

Sales to Toyota Kirloskar Motor rose sharply by 79.2 percent, from 5,481 units to 9,827 units, indicating a growing demand for cross-badged products.

The standout performer was the export segment, which surged 26 percent to 27,911 units from 22,160 units in April 2024. This strong export growth helped bolster the company’s overall numbers despite weaknesses in domestic sub-segments.

While some product lines such as the mid-size sedan Ciaz (-63 percent) continue to struggle.

Tata Motors reported total wholesales of 72,753 units for April 2025, reflecting a 6 percent year-on-year decline from 77,521 units in April 2024.

The passenger vehicle (PV) segment, including electric vehicles, accounted for 45,532 units, down 5 percent from 47,983 units in the same month last year. Within this, domestic PV sales dropped 6 percent to 45,199 units, while international business (IB) sales rose significantly to 333 units, up from 100 units. Electric vehicle sales (domestic + IB) declined 16 percent year-on-year to 5,318 units.

Commercial vehicle (CV) sales stood at 27,221 units, marking an 8 percent YoY drop from 29,538 units in April 2024. Domestic CV sales contracted 10 percent to 25,764 units, while CV exports (IB) grew 43 percent to 1,457 units. Key sub-segments like Small Commercial Vehicles (SCV) and pickups saw a steep 23 percent decline.

Despite growth in certain categories like ILMCV trucks and passenger carriers, overall sales momentum was tempered across both PV and CV segments.