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Business Standard
11-07-2025
- Automotive
- Business Standard
Used-car sales to expand 8-10% in FY26, outpace new vehicles: Crisil
The used-car market in India is expected to expand 8–10 per cent in FY26, more than double the projected growth for new car sales. The total used-car volume is likely to surpass 6 million units this fiscal, according to Crisil Ratings, driven by affordability concerns, growing digital platforms, and improved access to financing. The used-to-new car sales ratio has increased to 1.4 from less than 1 five years ago. The market value of used cars is estimated to be around ₹4 trillion, nearly matching that of new car sales. Crisil's analysis of six organised used-car companies — including CarDekho, Cars24, CarTrade, Spinny, Mahindra First Choice, and OLX-backed platforms — shows that revenue growth is expected to help players break even at the operating level in the next 12–18 months. Until then, liquidity and timely fund-raising will be critical, especially as most companies are still incurring cash losses due to high operating costs tied to logistics, refurbishment, and customer acquisition. Used-vehicle sales grew 8 per cent in FY25, rebounding from the slow 5 per cent annual growth between FY17 and FY24. This growth trajectory is expected to continue into FY26. However, India still trails global markets in used-to-new ratios, with the United States at 2.5, the United Kingdom at 4.0, and Germany at 2.6. 'The rising used-to-new car ratio suggests a shift in buyer behaviour, driven by digital platforms, faster upgrade cycles, and a growing preference for utility vehicles,' said Anuj Sethi, Senior Director at Crisil Ratings. The average age of used vehicles sold is declining and expected to fall to 3.7 years, down from 5.3 years in FY17. The segment also benefited from disruptions in new car deliveries caused by global semiconductor and rare-earth magnet shortages. Pre-owned vehicles have become an alternative for buyers seeking immediate ownership, while first-time buyers are finding more options in the used segment thanks to strong new vehicle sales in recent years. Despite topline growth, profitability remains elusive. 'High cost of customer acquisition, logistics and refurbishment continues to weigh on the operating margin, which remains thin or negative for many players,' said Poonam Upadhyay, Director at Crisil Ratings. She noted that integrated offerings — such as financing, insurance, doorstep delivery, and inspection services — may help reduce losses over time. Crisil data indicates that revenue for the six analysed players rose from ₹6,536 crore in FY22 to an estimated ₹16,500 crore in FY26. Despite losses, these companies maintain cash buffers from earlier fund-raises and are planning capital expenditure of ₹800–1,000 crore this fiscal, primarily to expand inspection hubs and improve technology. Since FY19, organised players have collectively raised over ₹14,000 crore in equity. Bank lending has remained tight for this sector due to continued cash burn but could revive — particularly for inventory-led platforms with physical collateral.
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Business Standard
07-07-2025
- Automotive
- Business Standard
Mercedes + UAE Golden Visa now a cheaper combo than just car deal in India
At ₹1 crore, buying a Mercedes in India now costs more than getting the same car in Dubai-plus a UAE Golden Visa under its new nomination-based residency scheme New Delhi At the price of buying a Mercedes-Benz E-Class in India, Indians can now get the same car in Dubai and secure a UAE Golden Visa —thanks to a new nomination-based residency scheme that drastically lowers the eligibility bar. A viral social media post by entrepreneur Abhinav Kukreja brought this comparison into sharp focus. 'If you have ₹1 crore, now you can either: 1. Buy a Mercedes E-Class in India or 2. Get Dubai Golden Visa for Life + Buy Mercedes E-Class in Dubai,' he wrote on X, along with a news clip. If you have 1Cr, now you can either: 1. Buy Mercedes E Class in India Or 2. Get Dubai Golden Visa for Life + Buy Mercedes E Class in Dubai — Abhinav Kukreja (@kukreja_abhinav) July 6, 2025 Mercedes E-Class pricing: India vs Dubai In India, the on-road price of a Mercedes-Benz E-Class now breaches the ₹1 crore mark in certain cities. In Bengaluru, the E 220d variant is priced at ₹1,02,05,006. In Delhi, the E 200 starts at ₹78.50 lakh, while the E 450 costs ₹92.50 lakh (ex-showroom), according to estimates from CarDekho. In contrast, in Dubai, the E 200 starts at AED 326,900 (roughly ₹74 lakh), and the E 450 4MATIC is priced at AED 432,900 (around ₹97.5 lakh). UAE Golden Visa math Until recently, the UAE Golden Visa was a privilege reserved for property owners or major investors, typically requiring AED 2 million (₹4.66 crore) or more in real estate or business commitments. But under the new nomination-based pilot scheme, Indians can now qualify by paying a one-time fee of AED 100,000 (around ₹23.3 lakh), following a detailed vetting process, no property or business investment required. Under this system, eligible Indians can obtain a lifetime UAE Golden Visa for AED 100,000 with no property purchase required. Applicants are selected based on professional track record, contributions to the economy or society, and a detailed background check that includes criminal history, financial stability, and even social media presence. This initiative, aimed at attracting professionals, entrepreneurs, creators, and even e-sports players, allows approved applicants to live in the UAE indefinitely, along with family and domestic staff, with full work and business rights. What can ₹1 crore get you in Dubai? Golden Visa (lifetime): ₹23.3 lakh Mercedes E 200 (Dubai): ₹74 lakh (approx) Total: ₹97.3 lakh Trump's golden visa gamble The UAE's lowering of barriers is in sharp contrast to US President Donald Trump's own golden visa proposals. The Trump Card, officially launched on June 12, 2025, demands a hefty $5 million (roughly ₹41.8 crore) investment for foreign nationals seeking US residency. Lauded by Trump as a 'beautiful road to the greatest country", the digital card features Trump's image and promises green card privileges and an eventual path to citizenship. However, the legal framework around the programme remains unclear. It has no legislative backing from the US Congress, no formal USCIS structure, and has already drawn scrutiny from legal experts, with warnings that it could be blocked or challenged in court. Despite this, over 68,000 people have registered interest, and Indian investors were actively pitched the programme during a recent visit by US Commerce Secretary Howard Lutnick.
