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India Used Two Wheeler Market Outlook to 2026 (Second Edition)

  • Report
  • 111 Pages
  • February 2022
  • Region: India
  • Ken Research Private Limited
  • ID: 5585209
Convenient Financing Options and Emergence of Online Marketplace Platforms Supporting Market Growth

FEATURED COMPANIES

  • Bike Bazaar
  • Bikers Highway
  • Bikes4Sale
  • CredR
  • Ducati
  • Mahindra First Choice
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” provides a comprehensive analysis of pre-owned two wheelers services in India. The report focuses on sales volume, industry revenue, segmentation by unorganized and organized sector, by C2C and B2C distribution channel, by stock piece and customized two wheelers, by source of manufacturing of two wheelers (domestically manufactured and imported bikes), by type of two wheelers (motorcycles and scooters), by engine capacity of two wheelers (100-110cc, 125-135cc, 150-200cc and others), by average ownership of two wheelers (3-4 years, 4-5 years, 5-6 years and 6+ years), by manufacturer of two wheelers (Hero, Bajaj, Honda and others), by body type of two-wheelers (commuter, scooter, sports and others), by certification of two-wheelers (non-certified and certified) and by financing of two-wheelers (non-financed and financed). The report also covers the overall competitive landscape; government role and regulations, growth restraints, drivers, trends and developments. 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.

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.

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. The Overall Online Market is expected to Increase at a double Digit Positive CAGR during the period FY’2021-FY’2026E

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

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


By Type of Market

  • Organized
  • Unorganized

By Sales Channel

  • C2C Channel
  • B2C Channel

By Source

  • Domestic
  • Imports

By Modification

  • Stock Piece
  • Customized

By Type of Bike

  • Motorcycles
  • Scooters

By Engine Capacity

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

By Replacement Cycle

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

By Certification

  • Certified
  • Non Certified

By Financing

  • Financed
  • Non Financed

Key Target Audience

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

Time Period Captured in the Report

  • Historical Period: FY’2015-FY’2021
  • Forecast Period: FY’2021–FY’2025

Companies Covered


Organized Used 2W Companies

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

Online Used 2W Platforms

  • Droom
  • Quikr
  • Olx
  • Bikes4Sale
  • CarandBike
  • Bike Jinni
  • Bikes24

Key Topics Covered in the Report

  • Market size of India used two wheeler market
  • 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

FEATURED COMPANIES

  • Bike Bazaar
  • Bikers Highway
  • Bikes4Sale
  • CredR
  • Ducati
  • Mahindra First Choice

1. India Used Two Wheeler Market: Executive Summary
1.1. Executive Summary - Industry Overview, Challenges and Trends
1.2. Executive Summary - Used Two Wheeler Financing
2. India Used Two Wheeler Market: Market Overview
2.1. Two Wheeler Landscape in India
2.2. An Overview of the Used Two Wheeler Industry, FY’2021 (New Two Wheeler Market, Used Two Wheeler Sourcing Channel, Used Two Wheeler Distribution Channel, End Users)
2.3. Value Chain Analysis (An overview of the offline and online supply chain in the India Used Two Wheeler Market)
2.4. New Two Wheeler Market (FY’2021-FY’2026E) (Market size in terms of Sales volume for New Two Wheelers in India)
2.5. Online Market for Used Two Wheeler (Growth Drivers, Value chain in the Used Two Wheeler industry)
2.6. Mobility Challenges in India
2.7. Applicable Operating Model
2.8. Business Cycle and Genesis (Introductory phase, infancy and growth stage, late growth stage)
2.9. Cross Comparison with Asian Countries (China, Japan and Indonesia) on replacement cycle and sales.
2.10. Comparison between Unorganized and Organized Dealers (On The Basis Of Revenue Streams, Margins, Presence and Target Audience Etc.)
2.11. Type of Organized & Unorganized Dealers in the Indian Used Two Wheeler Market (2W OEM certified dealerships, online classified/marketplace platforms, unorganized dealers, offline unorganized dealers)
2.12. Stakeholders (Friends & Family, Online Market Place, Organized Dealers and more)
2.13. Overview of Buying a Used Two Wheeler (Overview, Authority, Fee Charged, Insurance certificate and more)
3. India Used Two Wheeler Market Size, FY’2015-FY’2021
3.1. Used Bike Sales: Methodology (Organized B2C Market, Unorganized B2C Market, Unorganized C2C Market)
3.2. Market Size Scenario FY’2015-FY’2021 (on the Basis of GTV, Volume Sales and Average Price)
4. India Used Two Wheeler Market Segmentation, FY’2021 (on the Basis of Volume)
4.1. By Organized and Unorganized Market, FY’2021 (Comparison on the basis of Revenue streams, Business model, inventory, warranty and more)
4.2. By B2C & C2C Sales, FY’2021 (Comparison on the basis of Popular sources, time consuming, target regions and more)
4.3. By Domestic & Import Sales, FY’2021 (Major Brands, Sales Channel, Price range and more)
4.4. By Stock Piece & Customized Sales, FY’2021
4.5. By Motorcycle & Scooter, FY’2021
4.6. By Type of Bike (Commuter, Sports and Scooter), FY’2021 (Price, Average Dealer Margins, Major Brands and more)
4.7. By Engine Capacity FY’2021(100-110CC,125CC-135CC,150CC-200CC)
4.8. By Age of Vehicles FY’2021 (2-4 Years, 4-5 Years,5-6 Years)
4.9. Used Two Wheeler Pricing FY’2021 (By Engine Capacity & By Best Selling Modles: Bikes and Scooters)
4.10. Gender and Brand Wise Scooter Preference, FY’2021
4.11. By Non Certified & Certified, FY’2021
4.12. By Non Financing & Financing, FY’2021
4.13. By Bike Parcs & Cross Comparison with Manufacturers, FY’2021 (On the basis of Focus Area, Avg. Ex- Showroom price - New, Avg. Price - Used, Model Preferred)
4.14. By Regional Demand, FY’2021 (On the basis of urban and rural)
5. Snapshot on Used Two Wheeler Vehicle Financing, FY’2021
5.1. Major OEM and Online Platform and their finance partner
5.2. Various Business Models for sale of Used Two Wheelers loans (OEMs, Banks/NBFCs/Credit Unions, Physical Branded Dealer, Online Players, Online/Content Delivery)
5.3. NBFC Portfolio and Role of Technology in Future (Share of loan disbursement in Used Two wheeler market)
5.4. Recent Trends and Developments in used two wheeler financing (Key features of Major players in the Used two wheeler finance, growth drivers of the used two wheeler financing)
5.5. Growth Drivers of Used two wheeler financing
5.6. Financing penetration and trends in the used two wheeler financing
5.7. Financing norms (Eligibility, Applicable Limits, Process & Handling Charges)
5.8. Risks associated with Two Wheeler finance (Key Challenges & Emerging Risks in the used two Wheeler market and Salient Features of used two wheeler finance)
6. Franchise Model
6.1. Overview of Franchise Based Business model (Need for franchise business, Regulator scenario, Pros & Cons)
7. India Used Two Wheeler Competitive Scenario - Offline
7.1. Market Share & Sales on the Basis of Volume, FY’2021 (Competition scenario, Sales volume - CY’2021, Key Strategies)
7.2. Cross Comparison for OEM and Non-OEM Organized Offline Players on the Basis of Volume, Business Model, Stores, Sales Per Store, Employees, Inception, Footprints, Inventory, Value Added Services and others
7.3. Strength and Weakness for Major Organized Offline Players in India Use 2W Market
7.4. Case Study: CredR Company Profile (Company Overview, Company Background, Funding Scenario, Business Strategies, Business Model and more)
7.5. Case Study: Droom India Company Profile (Company Overview, Company Background, Funding Scenario, Business Strategies, Business Model and more)
7.6. Case Study: Honda Best Deal Company Profile (Company Overview, Company Background, Funding Scenario, Business Strategies, Business Model and more)
7.7. Case Study: Bike4Sale Company Profile (Company Overview, Company Background, Funding Scenario, Business Strategies, Business Model and more)
8. Snapshot on Online Used Two Wheeler Market
8.1. Pain Points & Need Gap Analysis
8.2. Market Size, FY’2020-FY’2021 (on the Basis of Revenues & Segmentation on the Basis of Leads Generated by Cities)
8.3. Lead Generated by Different Cities (Delhi NCR, Bangalore, Pune, Mumbai, Hyderabad and others)
8.4. Cross Comparison of Major Players on the Basis Of Business Model (Lead Generation Model, Commission Based Model and Subscription based model)
8.5. Customer Journey (Awareness, Research, Consideration, Acquisition, Service)
9. Snapshot on Online Used Two Wheeler Market: Competition Scenario
9.1. Market Leaders in Online Used 2 Wheeler Platforms (Nature of Competition, Major Players, Competition Scenario, Competitive Parameters)
9.2. Cross Comparison between Major Players in the online used 2 Wheeler Market on the basis of Funding/Investors, Business Model, Value Added Services, Popular Type of Bikes, Listings
9.3. Strength & Weakness of Major Players
9.4. Market Share of Major Players in India online used 2 Wheeler market
10. Customer Profile Analysis
10.1. Online Vehicle Buying Process
10.2. Buying Criteria (Purpose of Buying, Purchasing Channel, Physical & technical Inspection, Price)
10.3. Selling Criteria (Price, Sales Channel, Marketing, ownership transfer)
10.4. Findings on Customer Analysis (Concerns about the industry, Preference for type of Two wheelers, Geographical concentration, Services preferred and more)
10.5. Online Vs Offline Business Stream (Lead Generation)
10.6. Customer Profile Statistics: By Gender (Female, Male), FY’2021
10.7. By Age Group, FY’2021
10.8. By Income Level, FY’2021
11. Industry Analysis
11.1. Government Regulations (vehicle import specification, Vehicle testing, Depreciation norms, Vehicle life)
11.2. Trends & Developments
11.3. Growth Constraints
11.4. SWOT Analysis
12. Future Market Size Scenario, FY’2021 and FY’2026E
12.1. Future Market Size, FY’2021 and FY’2026E (on the basis of Sales Volume)
12.2. Opportunity Landscape for the Future
12.3. Impact of COVID on India Used Two Wheeler Market (Impact on Key Performance Indicators, Initiatives taken by key players)
12.4. Future Market Segmentation By B2C & C2C FY’2021 and FY’2026E (on the basis of Sales Volume)
12.5. Future Market Segmentation By Organized & Unorganized FY’2021 and FY’2026E (on the basis of Sales Volume)
13. Analyst Recommendations
13.1. Potential Market Opportunity (Present market gays, addressing the gaps)
13.2. Sales Channels
14. Research Methodology15. Appendix16. Disclaimer17. Contact the Publisher

A selection of companies mentioned in this report includes:

  • Honda Best Deal
  • CredR
  • Mahindra First Choice
  • Bike Bazaar
  • Suzuki Best Value
  • Bikers Highway
  • Royal Enfield Vintage
  • Ducati
  • Droom
  • Quikr
  • Olx
  • Bikes4Sale
  • CarandBike
  • Bike Jinni
  • Bikes24