Kolkata: Used car sales are expected to grow 8 to 10 percent in FY2025-26, according to a report by Crisil Ratings.
The report said that due to increasing digital usage and better financial access, sales are likely to reach around 60 lakh units this fiscal.
The ratio of used to new cars in sales has increased from less than one to 1.4 in the last five years, the report said.
The market value of used cars is estimated to be around Rs 4 lakh crore.
The report said that organised players in the sector are incurring high operating costs on refurbishment, logistics and financing as the sector is in a state of expansion, resulting in cash losses.
However, according to the report, strong revenue growth is expected to balance the operating profit levels in this fiscal and the next fiscal.
Until then, the credit profile of companies will largely depend on raising timely funds and maintaining adequate liquidity to support growth, Crisil Ratings said.
In the sector, business remained stable even during the pandemic and production disruptions due to semiconductor shortages, and is now expected to remain strong.
Organised companies have collectively raised Rs 14,000 crore through equity since FY19, the report said.
