Friday, December 11, 2020

Increasing Demand for Low-Priced Convenient Solution for Urban Commute Coupled with Huge Funding from Investors Supporting Growth in India Rental 2W Market: Ken Research

Increasing Use of Technology: Rental two wheeler players in India are continuously investing on new technologies and data science to transform urban mobility solution. Companies such as Bounce have started providing keyless tech which allows users to access bike with just an OTP. This helps their bikes to work on a dockless model, which means customer can pick up and drop off the vehicle anywhere, anytime. Other players are also focusing on security mechanisms and have introduced geo fencing, GPS tagging, etc. to monitor the fleet remotely. Apart from this, IoT ensures consistency in various parameters of the bike such as re-fuelling, battery swaps and timely maintenance.

Challenges in India Rental Two Wheeler Market: Two wheeler rental spaces in India were highly unorganized with presence of around 15,000 players owing to ambiguity on the government guidelines. Recently, the union ministry of road transport has asked all states to implement the Rent a Motorcycle Scheme, 1997. However, a number of checklists need to be ticked under the scheme to obtain a license. Rental 2W scooters currently fall under the 28% GST slab much higher than AC buses, cab aggregators, and other mobility service providers. Lack of proper infrastructure like vehicle pick-up and drop-off points, charging stations for EV vehicles, parking spaces, etc. is also a bottleneck to rental solutions. In addition, theft and vandalism of two wheelers is a major challenge faced by the rental providers in India.

Impact of COVID-19 on India Rental 2W Market: COVID-19 has adversely impacted the growth of rental two wheeler market in India. Urban mobility startups are downsizing their fleet by selling off vehicles to the second-hand market as many of them are forced to cut down on both capital and operational costs. At least half the demand for rental commute solutions has been wiped out from the market. Some of the smaller players were even at the verge of a shutdown incurring heavy losses due to the pandemic. On a positive note, companies are expecting a quick turnaround in the sector as the post pandemic will force a lot of people to adapt to private vehicle transport and the lightest-on-pocket way for them will be to use rented or shared vehicles. Many players have started offering long term rentals along with entering into a tie-up with a B2B company to sustain their operations. Sanitization services and doorstep delivery of two wheelers have been started by the major players during the pandemic.

Analysts at Ken Research in their latest publication India Rental Two Wheeler Market Outlook to 2025 - Driven by Introduction of Electric Vehicles and Adoption of Dockless System in Vehiclesobserved that the rental two market has a great potential to grow supported by the booming tourism, rapid digitalization and high inter-state migration. The advanced technology and additional features implemented by players such as dockless model, flexible ownership model, keyless tech, etc. is expected to boost growth of rental two wheeler markets in the years to come. Introduction of EV fleets in the micro mobility segment to cater to first and last mile travel solutions is also expected to drive the industry in the future. The India Rental Two Wheeler Market is expected to grow at a CAGR of 11.6% on the basis of GTV over the forecast period 2020-2025.

Key Segments Covered:-

By Market Structure (in Terms of Fleets and GTV)

Organized Market

Unorganized Market

By Type of Organized Market Fleets

Owned Fleets

Leased Fleets

By Major Cities (in terms of Fleets)

Bangalore

Goa

Mumbai

Pune

Jaipur

Delhi NCR

Hyderabad

By Type of Two Wheelers (in terms of Fleets)

Scooters

Motorcycles

E-Bikes

By Type of Bikes

Commuter

Sports

High End Bike

By Purpose (in terms of B2C Bookings)

Commuting

Leisure

By Booking Package (in terms of B2C Bookings)

Hourly

Daily

Weekly

Monthly

By Booking Channel (in terms of B2C Bookings)

Online App/Website

Physical Store

Booking via Call

By Usage (in terms of B2C Bookings)

Intracity Bookings

Intercity Bookings

Companies Covered:-

Bounce

VOGO Rentals

Drivezy

Yulu Bikes

ONN Bikes

RenTrip

Royal Brothers

ZopRent

Boongg

ZipHop

Wheelify

eBikeGo

RidoBiko

Bykemania

Mobycy

GoBikes

Faebikes

Key Target Audience:-

Rental Two Wheeler Players

Two Wheeler OEMs

Consultancy Companies

Industry Associations

Regulatory Bodies

Time Period Captured in the Report:-

Historical Period – 2017-2020

Forecast Period – 2020-2025

For More Information on the research report, refer to below link:

India Rental Two Wheeler Market

Related Reports:-

India Used Two Wheeler Market Outlook to 2025- Driven by Increase in Workforce Migration and Aversion towards Using Public Transportation

India Self Drive Car Rental Market Outlook To 2024 - Rising Prominence Of Shared Mobility Space With Growing Competencies Of Self Drive Companies Due To The Growing Investments

Saudi Arabia Used Car Market Outlook to 2025- By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford and Others), By Type of Sourcing, By Age of Vehicle (Less than 1 year, 1-3 years, 3-5 years & More than 5 years), By Kilometers Driven (Less than 50,000 Km, 50,000-80,000 Km, 80,000-120,000 Km & More than 120,000 Km) and By Region (Northern, Southern, Central, Eastern and Western)

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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