India Used Two Wheeler Market Outlook 2022-2026 – Online Marketplace Platforms Supporting Market Growth – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “India Used Two Wheeler Market Outlook to 2026 (Second Edition) – Convenient Financing Options and Emergence of Online Marketplace Platforms Supporting Market Growth” report has been added to ResearchAndMarkets.com’s offering.
The Overall Online Market is expected to Increase at a double Digit Positive CAGR during the period FY’2021-FY’2026E
India Used Two Wheeler Market Outlook to 2026 provides a comprehensive analysis of pre-owned two wheelers services in India. The report concludes with market projections for future for the market described above highlighting the major opportunities and challenges.
India Used Two Wheeler Market Overview and Size
India is the largest producer and manufacturer of two wheelers in the world followed by the Republic of China. Rising fuel prices is one of the primary growth drivers for two-wheelers due to their higher fuel efficiency.
In India, commuters across all age groups use motorized vehicles, especially two wheelers owing to the escalating population and rapid increase in traffic congestion, thereby making two wheelers as the most appropriate and convenient mode of transportation in urban areas. The market has attained speedy growth over the period of five years from FY’2015 to FY’2021.
The demand for used two wheelers has seen a constant rise over the past few years, especially from models like Honda Activa, Aviator, TVS Jupiter, Bajaj Pulsar and Discover. Even in terms of exports, two-wheelers produced in India are the proud products of the Make-in-India initiative where nearly 7 in 10 automobiles delivered out of India are two-wheelers.
Snapshot on Online Used Two Wheeler Landscape
The online used two wheeler market has been emerging with the rise in the popularity of e-commerce platforms in the country. Online platforms such as Flipkart, Amazon and Snapdeal have enabled India users to trust online platforms and make high value transactions online using their debit/credit cards and net banking.
The growth of online advertising, which has fuelled the rise of online classified platforms such as Droom, OLX, Quikr, Bikes24 and others have revolutionized the way in which pre-owned vehicles have been sold in the country. With the growth in the number of vehicles sold online, these players not only witnessed a sharp growth in marketplace revenue but also from other sources including advertisements, subscriptions and other value added services.
Snapshot on Used Two Wheeler Finance
In order to become a one stop shop for used two wheelers, most of the online platforms have partnered with multiple NBFCs and banks to offer loans to their customers. Finance institutions such as TATA capital, Yes Bank, Capital First, Bajaj Finance, ICICI bank and more have partnered with such online two wheeler platforms.
The penetration rate for used two wheeler financing in India is less than 10%. In rural areas, the number of loans for used two wheelers is increasing significantly while in urban areas, the rate of such loans is low owing to the high risk premium.
Various entities follow different business models. For instance, OEMs. Through their own portals allow the customers to avail loans through partnerships with leading banks and NBFCs and Online players providing auto loans as a bundled service through partnerships with leading banks and NBFCs along with the provision of automotive services including sale of used and new vehicles. Certification services amongst others
Comparative Landscape in India Used Two Wheeler Market
India used two wheelers market competition structure was observed to be highly fragmented with the presence of large number of local dealers, small mechanics and individual sellers.
Organized players such as Droom, Honda Best Deal, CredR, BikeDekho.com, Mahindra First Choice Wheels Limited (MFCWL) and others contribute very limited to the overall market. Certification and authentication, brand, price, mileage and performance, engine quality/power and total number of dealers are some of the critical parameters on the basis of which companies compete in the organized segment.
India Used Two Wheeler Market Future Outlook and Projections
India Used Two Wheeler Market is expected to grow in the coming years as used vehicles are much cheaper to purchase than a new one, since the introduction of BS VI Standards. Individuals mostly in smaller cities and towns who wish to own a vehicle begin with buying a second hand two-wheeler to get hold of it.
Similar is the case of women drivers who prefer purchasing a pre-owned vehicle to learn driving before they actually purchase a new vehicle. Also, local dealers who have been facing tough competition from the online classifieds will be seen associating with the online players to reach out to greater audiences
India Used Two Wheeler Market Segmentation
- By Market Structure: In FY’2021 the sales volume through the unorganized sector is generated through individual sellers, local dealers/mechanics and small dealerships which collectively contributed to a majority of the proportion in the overall used two wheelers market.
- By Distribution Channel: Due to low awareness regarding the existence of organized online and offline players, the majority of transactions conducted in the market are through C2C or offline B2C channel. The C2C channel controlled a major proportion of the total sales volume in the used two-wheeler market during the FY’2021.
- By Type of Two Wheelers: India used two wheelers market was continuously dominated by motorcycles with a massive volume share during FY’2021. This is because male riders travelling a longer distance still prefer motorbikes instead of a scooter due to larger engine and greater mileage and large number of variants offered by motorcycles. On the other hand, gearless scooters are trending in the country, especially among female population.
- By Engine Capacity: On the basis of engine capacity of two-wheelers, it has been observed that used bikes with 100-110 cc engine capacity have been mostly purchased by buyers. On the other hand, engine capacities with 125-135 cc, 150-200 cc and others have been gaining traction in India.
- By Average Ownership Period of Used Two Wheelers: The buying behavior of Indians has witnessed changes over the review period majorly due to a reduction in the ownership period of two wheelers by the owners. It has been observed that presently, Indians mostly use a two-wheeler for at least a period of three to five years before disposing it off.
- By Manufacturer of Two Wheelers: The Indian used two wheeler market is dominated by Hero which is also the global leader and largest player in the new two-wheeler market. The company caters to a wide consumer base and has segmented its market on the basis of income and age group.
- By Certification of Two Wheelers: The Indian used two wheeler market is segmented on the basis of certified and non-certified used two wheelers. Certified two wheelers are sold after a proper verification process and quality check. It has been observed that non certified used two wheelers have strong presence in the Indian market.
- By Financing of Two Wheeler: The Indian used two wheeler market is segmented on the basis of financing i.e. financed and non-financed used two wheelers. Many organized Used two wheeler players have started venturing into facilitation of loan services therefore the process of getting loans for two wheelers which was earlier very difficult, has now become much simpler.
- By Body Type of Two Wheelers: The category of commuter bikes such as Hero Splendor, Bajaj Discover, and Honda CB Twister contributed to a dominant volume share of used two-wheelers during the FY’2021. The next popular vehicle category in the used-two wheeler space in India has been scooters.
Time Period Captured in the Report
- Historical Period: FY’2015-FY’2021
- Forecast Period: FY’2021-FY’2025
Organized Used 2W Companies
- Honda Best Deal
- Mahindra First Choice
- Bike Bazaar
- Suzuki Best Value
- Bikers Highway
- Royal Enfield Vintage
Online Used 2W Platforms
- Bike Jinni
For more information about this report visit https://www.researchandmarkets.com/r/ts5vwo
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