Prices
India’s Festive Season Fuels Used-Car Boom: Sales Seen Up 12–15% as Prices Stay Flat
By CARC Editorial Team · October 23, 2026 · 3 min read
India’s used-car market is heading into its strongest quarter of the year, with industry projections pointing to 12–15% year-on-year sales growth for October–December 2026, per Business Standard and Business Today reporting compiled by VahanBazaar. Organised used-car players are expected to grow even faster — 25–30% or more — as the festive season converts held-back demand.
The dealer mood matches the math. In FADA’s October outlook, 75.57% of dealers expect growth, 19.46% expect a flat month and only 4.98% expect a decline, with bookings already building and dealers counting on Navratri and Dussehra demand converting through the month. September set the stage: total vehicle retail hit 25.37 lakh units, up 31.82%, per FADA.
Here’s the buyer-friendly twist: used-car prices going into the season are broadly flat, with average tickets on one organised platform sitting around Rs. 5.5–6 lakh. The reason is supply. FADA says passenger-vehicle inventory reached 43–45 days at the end of September against a recommended 21-day benchmark — dealers holding extra new-car stock push harder with exchange offers, and every exchange feeds an older car into the used market. More choice, flat prices, and negotiable sellers: for Indian used-car buyers, this festive season is unusually buyer-friendly. The projection, though, is a forecast — not a measured result — so treat it as direction of travel.
Sources: VahanBazaar, Business Standard, FADA