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. 

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Mercedes-Benz India, one of the leading luxury carmakers in the country, has recorded its highest-ever fiscal sales, retailing 19,363 units during the April 2025 to March 2026 period.

The company marked an uptick of 7 percent in the Q1 2026, where the company delivered 5,131 units compared to 4,775 in Q1 2025.

The German luxury brand’s growth was primarily driven by the Top-End Luxury segment, which grew by 16 percent in FY2026 and now accounts for 27 percent of total sales. This category includes the S-Class, Mercedes-Maybach and the AMG range. Demand for certain models, such as the AMG G 63 and Maybach S-Class, has resulted in waiting periods of up to 12 months.

In contrast, the Entry Luxury segment saw an 18 percent decline. The company stated it would maintain a ‘value over volume’ strategy, prioritising feature-rich content and brand desirability over price-led volume incentives.

For Mercedes-Benz India, the Long Wheelbase (LWB) E-Class remains the highest-selling luxury car in the country. It continued to see robust demand for the C-Class, GLC and GLE SUVs.

Furthermore, contribution of Battery Electric Vehicles (BEVs) now comprise 20 percent of all Top-End models sold. Within the luxury BEV segment (priced above INR 14 million), the company recorded 85 percent growth. The EQS SUV has emerged as the highest-selling luxury electric model for the brand. Mercedes-Benz plans to launch the electric CLA on 24 April 2026 as its first ‘software-defined’ electric vehicle.

Under its ‘Go to Customer’ strategy, the company plans to open more than 20 luxury outlets in 2026. This expansion involves a INR 4.50 billion investment from franchise partners. New facilities are scheduled for Q2 2026 in emerging markets, including Visakhapatnam, Varanasi and Goa, alongside reinforcements in Mumbai and Pune.

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said, “Mercedes-Benz remains the most desirable luxury brand in India buoyed by strong customer loyalty for both our new and existing products. We are thrilled with the strong demand for our top-end luxury portfolio that set new benchmarks in the luxury segment with exclusivity and personalization. Similarly, a sustained demand for the ‘core’ segment underlines unwavering customer trust for winning products like the C-Class, LWB E-Class sedans and GLC and GLE SUVs.”

“Our product fireworks for 2026 will continue as we introduce two new AMGs for performance enthusiasts. We are enthused by the overwhelming response to new products like GLS Maybach, the V-Class and the CLA BEV, and customers can expect more desirable products planned across segments for the remaining quarters. Mercedes-Benz will maintain a sharp focus on superior product content and customer aspirations, reinforcing our strategy of value-led growth over volume aspirations,” he concluded.

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Hyundai Motor India (HMIL) has introduced the Creta Summer Edition, featuring updates to technology and convenience features across several trim levels at prices starting INR 1.2 million upto INR 1.63 million (ex-showroom). The launch follows a fiscal year where Creta sales exceeded 200,000 units, contributing to a cumulative customer base of over 1.4 million since 2015.

The Summer Edition introduces specific hardware and software upgrades intended to increase accessibility to premium features.

• EX and EX(O) Trims: These variants now include smart keys and push-button start. The EX(O) specifically adds quad-beam LED headlamps, LED tail lamps and a rear camera with dynamic guidelines.
• S(O) and SX Trims: A dashcam with multiple recording modes (driving, emergency, and vacation) has been integrated. The SX trim further receives a 26.03 cm (10.25-inch) multi-display digital cluster.
• SX Premium Trim: This top-tier edition is equipped with a Surround View Monitor (SVM), Blind-spot View Monitor (BVM) and front parking sensors in addition to the digital cluster and dashcam.

The integrated dashcam allows for video downloads to mobile devices via a dedicated application, supporting on-demand video and photo capture.

The Summer Edition is available with both 1.5l MPi petrol and 1.5l U2 CRDi diesel engines. Transmission options include manual (MT), Intelligent Variable Transmission (IVT) and automatic (AT).

Sunil Moolchandani, National Sales Head, Hyundai Motor India, said, “The Hyundai Creta is not just a product, it is a legacy that has played a defining role in shaping the SUV market in India. With more than 1.4 million customers and annual sales exceeding 2 lakh units in FY 2025-26, Hyundai Creta continues to reinforce its position as the undisputed No.1 in the mid-size SUV segment since its launch in 2015. The introduction of the Creta Summer Edition variants reflects our commitment to making advanced technology and comfort more accessible, with features such as the 26.03 cm (10.25”) Multi Display Digital Cluster, Surround View Monitor (SVM) and Dashcam among others further enhancing safety, convenience and driving confidence. These meaningful upgrades will continue to strengthen Creta’s leadership and emotional connect with customers across the country.”

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Kia India has announced that more than 100,000 customers have renewed their paid subscriptions for Kia Connect. The automaker has achieved a retention rate exceeding 30 percent following the expiry of the initial three-year complimentary period.

Since its introduction in 2019, the platform has evolved from its original 'UVO' branding to the current Kia Connect 2.0. Globally, the manufacturer reports an enrolment rate of approximately 97 percent. In India, the company has surpassed 500,000 total sales of connected vehicles.

The platform provides over 100 features across five categories – navigation, remote control, safety & security, vehicle management and convenience.

Kia offers three tiers of renewals – Standalone, Basic and Premium – with flexible durations. Prices for a one-year subscription range from INR 1,890 to INR 4,690, while three-year plans range from INR 3,890 to INR 9,090.

The renewal trend is supported by hardware integrations such as the Connected Car Navigation Cockpit (CCNC) and software initiatives like Drive Green, which monitors sustainable driving practices.

Atul Sood, Senior Vice-President – Sales & Marketing, Kia India, said, “Crossing the milestone of one lakh Kia Connect subscription renewals reflects the growing trust customers place in our connected mobility ecosystem. The continued adoption beyond the complimentary period highlights the everyday value we deliver through enhanced convenience, safety, and control. We remain committed to advancing our digital platforms for a smarter, more connected driving experience.”

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German automotive major Volkswagen Group has detailed the progress of its ‘In China, for China’ strategy at Auto China 2026 in Beijing. The Group is expanding its portfolio with a focus on smart electric vehicles, including four world premieres from its Volkswagen, Audi and Jetta brands.

During 2026, the Group plans to launch over 20 new electrified vehicles (NEVs), encompassing battery electric models, plug-in hybrids and range-extender variants. Following this period, the company intends to introduce a new model approximately every two weeks.

The new product includes Volkswagen’s new member in the ID. UNYX category and the first all-electric model in the ID. Aura series. The latter utilises the locally developed CEA electronic architecture.

The Jetta brand will see an all-electric show car marking the transition toward electrification.

The exterior design of the AUDI E7X, the second production model under the Group’s China-exclusive sister brand.

Porsche will mark the global debut of a new model within the all-electric Cayenne family.

The Group’s software developments are focused on Level 2 Advanced Driver Assistance Systems (ADAS), including Navigation on Autopilot (NOA) for urban and highway environments. These systems are developed by CARIZON, the Group’s Chinese centre for autonomous driving, which is also working on proprietary System on Chip (SoC) hardware for future Level 3 and Level 4 capabilities.

Oliver Blume, CEO, Volkswagen Group, said, “Three years ago, we launched our ‘In China, for China’ strategy to fully tap into the potential of the Chinese innovation market. We decide, we act, and we deliver. The new models we are presenting at this year’s ‘Auto China 2026’ impressively confirm that the Volkswagen Group is making good progress on its path to becoming a global tech driver in the automotive industry. China plays a central role in this. Because the progress we achieve here strengthens our competitiveness worldwide.”

Ralf Brandstatter, Member of the Board of Management for China, added, “Our ‘In China, for China’ strategy is coming into its own. In less than 36 months, we have developed a completely new product portfolio for China. Starting in 2026, we will launch a new vehicle on average every two weeks. This is the Volkswagen Group’s largest-ever electric mobility offensive in China. The Beijing Auto Show underscores the consistency and speed of our realignment.”

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