An estimated 5.5-6 lakh used cars were sold across India during the Navratri-Diwali festive period this year, compared with fewer than 5 lakh units in the corresponding period last year, as first-time buyers, rural households and greater access to financing drove demand for hatchbacks, SUVs and luxury vehicles, industry sources told businessline.
Cars24 alone disbursed over ₹300 crore in car loans, while market sources estimated that total financing for new and used cars combined crossed ₹1,000 crore during the festive period.
The used-car sales estimates cover both organised dealerships and unorganised sellers. Buyers were drawn by lower acquisition costs, predictable running expenses and opportunities to upgrade without paying new-car prices, while easier access to credit helped widen vehicle ownership.
Gurugram-based Cars24 sold 19,039 pre-owned vehicles during the Navratri-Diwali period, up 44 per cent from an estimated 13,221 a year earlier, according to its Festive Performance 2026 Report released on Wednesday. The previous year’s figure was calculated based on the reported growth rate. The company said 72 per cent of its buyers were purchasing their first car, while 40 per cent came from rural pincodes.
“Festivals have always been a special time for families to bring home a car. But what we are seeing is that the relationship with a vehicle begins well before the purchase and continues long after it,” said Vikram Chopra, Founder, Cars24.
Cars24 said financing penetration rose to 55 per cent of its retail car purchases from 53 per cent a year earlier. Women accounted for 36 per cent of its buyers, compared with 31 per cent in 2025.
The company’s loan disbursements highlighted the role of financing in festive purchases, although the broader industry estimate of more than Rs 1,000 crore covers both new and pre-owned vehicles.
Hatchbacks accounted for more than half of Cars24’s festive sales, while SUVs emerged as the fastest-growing body type. Maruti Suzuki, Hyundai and Tata Motors were the company’s three most purchased brands, with the Nexon, i10 and Baleno among the top-selling models. Tata’s pre-owned vehicle sales on the platform increased 85 per cent year-on-year.
A Delhi-based used-car dealer reported a similar trend, with buyers evaluating running costs, vehicle condition and service history alongside purchase prices.
“Customers are increasingly looking for vehicles that offer lower running costs, reliable service histories and predictable ownership expenses. Hatchbacks remain attractive for first-time buyers, while families upgrading from smaller cars are increasingly considering compact SUVs,” the dealer said.
Cars24’s platform data showed that petrol vehicles accounted for 65 per cent of buyer demand, compared with 58 per cent of supply leads, indicating stronger demand than available supply.
CNG and electric vehicles together accounted for more than 15 per cent of bookings, compared with 10 per cent of supply leads, suggesting a similar mismatch between buyer preferences and the vehicles available for sale.
In northern India, Cars24 reported an 18 per cent increase in the share of BS-VI vehicles sold, alongside a 22 per cent increase in seller leads for non-BS-VI vehicles.
The festive demand extended to pre-owned luxury vehicles, where customers sought relatively new premium models at prices comparable to those of new mass-market vehicles.
Avneet Singh Kohli, Founder of Delhi-based luxury automobile dealership Autobest Emperio, said enquiries strengthened, particularly in the Rs 30-60 lakh price segment.
“The Rs 30-60 lakh price bracket was particularly active, with customers largely looking for two- to four-year-old luxury cars that offered good value without compromising on features or brand experience,” Kohli said.
SUVs such as the BMW X1, X3 and X5, Mercedes-Benz GLC and GLE, and Audi Q5 and Q7 attracted strong interest.
The Mercedes-Benz E-Class, along with the BMW 3 Series and 5 Series, remained popular among sedan buyers.
Kohli said younger entrepreneurs and business owners were increasingly opting for pre-owned luxury vehicles instead of new premium mass-market cars available at similar price points.
Petrol and diesel models continued to dominate preferences in the luxury segment, while concerns over battery health, replacement costs and resale values limited interest in pre-owned luxury electric vehicles.
“The festive buying patterns illustrate how India’s used-car market is expanding across price points, with hatchbacks bringing households into first-time ownership, SUVs attracting upgrading families, and luxury vehicles giving aspirational buyers access to premium brands at lower prices,” said a Mumbai-based used-car dealer.
Published on November 12, 2026
