Today, we stand at the cusp of financial year 2025-26, where India’s used vehicle market is on the verge of growth. The used commercial vehicle (CV) industry is also poised for a modest yet significant recovery in the said timeline. Before Shriram Automall India Limited, India’s used commercial vehicle market was largely unorganized, with opaque processes leading to value loss for buyers and sellers. SAMIL’s transparent, structured, and ISO 9001:2015 certified phygital auction platform has transformed the industry—enabling lakhs of seamless and fair transactions.

Market Analysis of Used CV Market

According to various prophecies, the used commercial vehicle market has become equal to the new commercial vehicle market, i.e. the market sales ratio for both is 1:1. This basically implies that every new commercial vehicle becomes the base of used ones.

A Gradual Rebound of Medium and Heavy Commercial Vehicles

The M&HCV segment is expected to witness a year-on-year volume growth of up to 3% in financial year 2025-26, after facing a 7% contraction in the first nine months of financial year 2024-25. This slight upward trend is attributed to the resumption of construction and infrastructure projects, steady rural demand, and increased replacement sales of aging vehicles.

Steady Recovery of Light Commercial Vehicles

The LCV segment is similarly expected to grow 3-5% in financial year 2025-26 after a marginal contraction in financial year 2024-25. The early decline occurred due to a high-base effect, a slowdown in e-commerce, and increased competition from electric three-wheelers.

Buses Leading the Charge in Electrification and Growth

The standout segment with an expected growth of 8-10% in financial year 2025-26 is the buses. This high surge is primarily because of the scrapping of older government vehicles which led to an increased replacement demand from State Road Transport Undertakings (SRTUs). The bus segment stands at the forefront of the adoption of electric vehicles (EVs), with electric buses capturing a market share of 5%. This reflects a significant shift towards greener energy solutions and eco-conscious thinking.

Shift Towards Alternative Fuels

With 88% market share, diesel dominated the CV industry in financial year 2024-25. But we will notice a discerning shift towards alternative fuels such as CNG, LNG, and electricity. The need for cleaner fuel options, higher fuel prices, and stringent emission standards drove this transition.

Stability at the Financial Front

There would be no change in the operating profit margins for CV manufacturers as it will remain stable at 11-12% in financial year 2025-26, supported by favourable raw material prices, strategic price hikes, and effective cost-cutting measures.

Challenges and Opportunities

The industry is bound to face many challenges due to new regulations like, mandatory air-conditioned cabins for trucks, which could increase the vehicle costs by Rs. 20,000-30,000. Other than this, stricter emission norms and higher raw material costs might also pose significant challenges. However, these challenges can easily be offset due to the expected surge in infrastructure demand and consistent recovery in demand.

Used Commercial Vehicles: A Crucial Market

The used commercial vehicle market plays a pivotal role in the evolution of the industry landscape. We have first-hand witnessed the increasing demand for pre-owned vehicles, and this surge is driven by many factors:

• Affordability – Buying a pre-owned vehicle is highly cost-effective for businesses, especially for small and medium enterprises as it enables them to expand their fleets without any significant capital investment.
• Demand for Replacement – The aging fleet, estimated at around 10 years for M&HCV has led to a robust replacement market. This is because businesses are seeking reliable pre-owned vehicles to meet operational needs.
• Dynamics of Supply Chain – The technological advancements and introduction of new models have resulted in a steady supply of quality pre-owned vehicles, hence providing buyers with diverse options.

SAMIL’s Commitment to Seamless Transactions

SAMIL is committed to facilitating seamless transactions in the used vehicle market. We attain this goal through the distinct services that we offer, which include:

• Automated Auctions – We effectively leverage technology to ensure transparent and efficient phygital bidding processes.
• Valuation Services – We provide accurate assessments to help buyers and sellers make informed decisions.
• Financial Solutions – We collaborate with financial institutions to offer tailored financing options for pre-owned vehicle purchases.

Impact of Recent US Tariffs on India's Used CV Market in FY 2025–26

Aspect	Details	Potential Impact on India
New US Tariff Policy	25% tariff on all imported cars 26% specifically on Indian imports	Raises export costs for Indian vehicles to the US
Shift in Demand	Higher cost of new imports may push demand toward used vehicles globally	India could benefit if the used CVs fall outside tariff scope
Export Slowdown Risk	If Indian CVs fall under the tariff, exports may decline due to less competitive pricing	Oversupply in domestic market due to unsold stock
Domestic Used CV Market Outlook	Expected 3–5% growth in FY 2025–26 due to infrastructure and fleet replacement needs	Growth may accelerate if more used CVs stay in India and resale channels strengthen

The domestic Indian market could feel the ripple effects of these US tariffs in subtle but meaningful ways. If exports of used vehicles to the US dip due to cost barriers, the surplus could enhance availability in the local market, potentially making used commercial vehicles more affordable for small fleet operators and first-time buyers. This might spur demand in rural and Tier II–III regions, where price sensitivity is high. Along with that, the pressure on margins and inventory movement could drive innovation in refurbishment and vehicle financing models within India. As OEMs and dealers seek new ways to maintain turnover, the domestic used CV ecosystem may become more organized and competitive.

Steering the Next Chapter of Mobility

The pre-owned commercial vehicle market in India is not just evolving—it’s accelerating. With ongoing policy shifts, a growing focus on sustainability, and the ripple effects of global trade dynamics, financial year 2025–26 will be pivotal. Backed by infrastructure momentum and fleet renewals, the used CV segment is expected to grow steadily at 3–5%, setting the tone for an estimated industry-wide growth of 15–20% over the next five years.

At SAMIL, we are proud to be at the forefront of this transformation. Our phygital ecosystem, built on trust, technology, and transparency, is not only helping buyers and sellers transact confidently but is also shaping a more accessible and organised future for the industry.

As demand rises across Tier II–III markets and price-conscious segments, we foresee greater affordability, deeper market penetration, and a stronger shift towards sustainable mobility. This financial year won’t just be about recovery—it will be about redefinition. And with every auction, every vehicle, and every innovation, SAMIL will continue to drive India’s mobility revolution forward.