Increase in workforce migration and fear of using public transportation are expected to fuel the growth of the India Used Two Wheeler Market in the future: Ken Research

 1. The trend towards avoidance of public transportation after COVID 19 and digitization of used vehicle sales/purchases will lead to higher demand for used two-wheelers in India.

Even in the rural areas, where there are very few banks, customers have a lot of options to get loans. People living in rural areas, can access NBFC, which makes it convenient for such borrowers to purchase a pre-owned bike on EMI. In addition to this, EVs are going to be digitally connected, inclusive of safety features, location access etc. This might increase the tie ups which might lead to increase in down payments.

2. Emergence of female drivers expected to drive demand for scooters however, motorcycles, with their variety of models, continue to dominate the market

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Commuter bikes gives high mileage and has very low maintenance cost, thereby useful for day to day commuting. Majority population is the working middle class population, who prefer lower cost bikes for day to day travel. Moreover, Spending over basic necessities have reduced from nearly ~50% of total expenditure (FY’2010) to nearly ~30% (FY’2020) of total expenditure, thereby increasing discretionary spending in the hands of the people. Due to its higher fuel efficiency, commuter bikes are preferred by millions of drivers who are part of the E-Commerce and Hyperlocal Environment. Increase in demand for E-Commerce and Hyperlocal deliveries is expected to boost the demand and hence Commuter Bikes continue to dominate the Market.

3. The price of 2W, both new and used, is constantly rising, leading to a rise in demand for financing of used two-wheelers.

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Growing per capita incomes coupled with a continually increasing penchant for riding among India’s large youth population is pushing up the demand for premium bikes. Increased cost and lower affordability of used premium and sports two wheelers is acting as a catalyst for used two wheeler financing. Moreover, technological advancements in the form of a shift from combustion engine vehicle to electric vehicles, new product launches, high vehicle replacement rate are boosting the sales of used two wheelers across the country, thereby driving the two wheeler loan market.

Additionally, net banking has eliminated hassles associated with long approval processes, enabling online loans to be applied for and fewer documents to be required, leading to a positive impact on the market. Additionally, presence of major automakers in the country, flexibility in terms of tenure and payment mode, negotiable interest rates based on CIBIL score is further steering growth in India two wheeler loan market.

Surge in Lead Generation through Online Channels and Potential Entry of OEM’s is expected to drive the Used Two Wheeler Market in India: Ken Research

March 2022|India News

• Demand for Used Two Wheelers is expected to increase as lockdown due to COVID 19 is easing further, but supply for second hand two wheelers has also reduced, owing to people holding on to their two wheelers for a longer period.
• Entry of OEM’s into the used two wheeler market is expected to drive the demand further, as the market becomes more organized.                                      

Increasing Demand for Luxury Motorcycles: The demand for luxury, high end used two wheelers is increasing owing to the budget constraints and rising aspirations of young consumers. Supporting this trend, luxury 2W OEM’s such as BMW and Ducati are entering the used two wheeler market on their own, with certified vehicles and easy financing options to increase their reach and target new consumers. As disposable income increases, it is expected that more luxury used two wheelers will enter the market, driving the demand. This will also ensure a slight marginal increase in the organized segment in the industry.

India Used Two Wheeler Market Overview

Increased focus on Quality: As market awareness increases, buyer’s decision making process has transitioned from pricing to product quality along with pricing.

Quality check parameters include Paperwork, Vehicle accessories check, Engine Capacity, Bodywork including fairings, windshields and bags, Front and rear fenders, Road test, Paint, Tyres, Breaking System and others. Online platforms helping consumers take informed decisions by providing product rating & user reviews, on road prices in all cities and with respect to dealers, regular publishing of article & blogs.

Internet-based sales to dominate the market: The internet has expanded from just being a tool to check updates over social media or emails to purchase and sales of goods as well. E-commerce industry is a booming sector and, in this sector, the pre-owned vehicle sale, as well as, purchase is a profit-making business. Moreover, in purchase of used bike online platforms, the popularity for consumer to consumer have escalated. In 2020, CredR, a used bike sales platform announced delivery of second-hand bikes to doorstep of consumers.

Rising Aspirations of Young Population: Increased urbanization & standard of living there has been a shift in consumer preferences with a rising need for a personal vehicle. However, consumers in low income bracket prefer used bikes/scooters. Increased working age population¹ (49.25% in 2019) now prefer travelling on their own against crowded public transport. Therefore in most cases they choose to buy a second hand vehicle before buying a new one. Millennial population often fascinated with Super/Imported bikes opts for used imported ones owing to affordability constraints.

The report titled “India Used Two Wheeler Market Outlook to 2026 (Second Edition) - Convenient Financing Options and Emergence of Online Marketplace Platforms supporting Market Growth” by Ken Research suggested that the used two wheeler market is expected to grow at a double digit positive CAGR. Rising Aspirations of young consumers along with increasing in demand from Tier II & Tier III cities is driving the used two wheeler market in India. The used two-wheelers sales volume in India is expected to grow over the next few years owing to introduction of new two wheeler variants along with the rising aspirations of low and middle income consumers in the country.

Key Segments Covered in India Used Two Wheeler Market, FY’2021

• By Modification

• Stock Piece
• Customized

• By Type of Bike

• Motorcycles
• Scooters

• By Engine Capacity

• 100CC-110CC
• 125CC-135CC
• 150CC-200CC

• By Replacement Cycle

• 0 years - 2 years
• 2 years - 4 years
• 4 years - 5 years
• 5 years – 6 years
• 6+ years

• By Financing

• Financed
• Non Financed

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 Key Target Audience

• Two Wheeler OEM’s
• Two Wheeler Dealers
• Online Portals (Aggregators)
• Marketplace Online Platforms
• Online 2 Wheeler Classified Portals
• E-Commerce & Hyperlocal Companies
• Private Equity Investors

Time Period Captured in the Report:

• Historical Period: FY’2015 - FY’2021
• Forecast Period: FY’2021 - FY’2026E

Companies Covered:

Organized Used 2W Companies

• Honda Best Deal
• CredR
• Mahindra First Choice
• Bike Bazaar
• Bikers Highway
• Royal Enfield Vintage
• Ducati
• Suzuki Best Value

Online Used 2W Platforms

• Droom
• Quikr
• Olx
• Bikes4Sale
• CarandBike
• Bike Jinn

Key Topics Covered in the Report

• India Used Two Wheeler Market Future Outlook
• Market size of India online used two wheeler market
• Value chain in India used two wheeler market
• Market segmentation of India used two wheeler market on the basis of market structure, stock piece & customized vehicle, distribution channels, source of
• Manufacturing, type of two-wheeler, engine capacity, average ownership period, by manufacturer, body type, certification and financed & non-financed vehicle.
• Trends and Developments in India used two wheeler market
• Growth Drivers and Restraints in India used two wheeler market
• SWOT analysis in India used two wheeler market
• Pre-Requisites to Enter the India used two wheeler market
• Government Regulations in India used two wheeler market
• Major players and their business models
• Customer Profile in India used two wheeler market
• Analyst Recommendations

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