India Used Two Wheeler Market Outlook to 2020 - Rising Sales Through Online Channels and Potential Entry of OEMs to Foster Growth” provides a comprehensive analysis of the various aspects such as market size of India used two wheeler market. The report also covers the segmentation on the basis of marketing structure, distribution channel, source of manufacturing, type of two-wheeler, engine capacity, ownership period of vehicle and others. Major players in India used two wheeler market have been identified and their competitive landscapes have also been covered in the report. The report is useful for online classifieds platforms, two- wheeler manufacturers, dealers of used two-wheelers, and new players venturing in the used two wheeler market.

1. India Used Two Wheeler Market Report –
2020 : Ken Research

2. The used two-wheeler market in India has witnessed
unparalleled growth over the period 2010-2015. The
market has witnessed an unprecedented CAGR of ~%
during the period 2010-2015 in terms of revenue. The
used-two wheeler market in India has perceived a
growth of 14.9% in terms of sales volume over the
period 2010-2015. During the year 2010, the market
recorded volume sales of ~ million used two-wheelers
in the country which grew to ~ million.

3. The growth of this sector has been majorly driven by
rising aspirations of Indian consumers, frequent
launches of two-wheelers and availability of easy
financing options which have led to a greater supply
of pre-owned vehicles in the market. Additionally, the
reduction in the ownership period of two-wheelers
has also been an important factor that has driven the
used two wheeler market in the country.

4. The market witnessed entry of a few organized players
which focused on product quality. This encouraged
working women and young individuals to look for
used vehicles in good conditions. Further, increasing
parking issues in metropolitan cities, rising parking
charges in commercial compounds and rising
problems of traffic have fuelled the sales of pre-
owned scooters and two wheelers in India.The used
two-wheeler market faces a number of issues such as
lack of display, limited choice in the number of
vehicles and lack of background verification including
others

5. As more and more online players, which focus on quality
will enter the market, the used two-wheeler market
will perceive more transparency and authenticity in
the transactions. Despite a number of hassles and lack
of trust involved in buying and selling of used two-
wheelers in India, the market is largely dominated by
unorganized players. Individual sellers, local
mechanics and small dealerships together contributed
to nearly ~% of the market in terms of revenue during
2015.

6. In India getting a bike customized costs at least INR
300,000 and above and there exist a very few players
in the customized bikes market. The number of
individuals who are bike enthusiasts and are able to
afford expensive bikes constitute a very small
proportion of buyers in the market for new
customized bikes. During the year 2015, customized
two-wheelers contributed to a mere 0.02% of the
used two-wheelers sold in India, while the major
chunk consisted of standard vehicles manufactured by
companies.

7. In India, riders of two-wheelers are majorly
commuters while only a few are enthusiasts.
Additionally, price and mileage are the most
important factors that Indians consider before
purchasing a new vehicle. This is the major factor
behind companies focusing on production of low
maintenance and high performance bikes and
scooters. Domestically manufactured bikes have
dominated the sales of used two wheelers in India
with a hefty share of ~% in the sales volume during
2015.On the basis of engine capacity of two-
wheelers, it has been observed that used bikes with
100-110cc engine capacity have been mostly
purchased by buyers.

8. The share of this segment in the volume sales
during 2015 was noted at ~% and ~% in 2010.
These commuter bikes is that they are
affordable and deliver strong mileage, due to
which they appeal to the masses. 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. Hero
contributed to a share of ~% share in the sales
of used two-wheelers during 2015. Bajaj is the
second largest manufacturer of motorcycles in
the country which contributed to a share of ~%
in volume sales as of 2015.

9. It has been observed that today Indians mostly use a
two-wheeler for at least a period of three to five years
before disposing it off. During the year 2015, ~% of
the two-wheelers sold were 4-5 years old, while ~% of
the used vehicles sold were 3-4 years old. Increasing
urbanization and rising income levels of Indian
consumers has been leading to rising aspirations of
the middle and lower middle class income consumers.
Individuals in the low income bracket prefer to buy a
used scooter or a bike since they cannot afford a car
or a new two wheeler vehicle.

10. Indian and global players in the two wheeler
market have been frequently introducing new
models of bikes and scooters. This enables
vehicle owners to frequently change their bikes
and sell the old ones. Increasing income levels
of consumers along with the changing behavior
of individuals has led to an increase in the
replacement rate of vehicles. However, the
industry faces a number of challenges. Lack of
trust and standardization have been the major
issues in the pre-owned two wheeler market
due to which most of the potential buyers
prefer not to buy a used vehicle.

11. Dealers and mechanics with small establishments or
road side set-ups do not have access to warehouses.
Furthermore, there are no standardized prices set for
used vehicles and a seller may charge a high amount
for a vehicle which may not be in a superior condition.
Lack of standardization is another major drawback in
the Indian used two wheeler market. Another
drawback associated with purchasing second hand
vehicles from unorganized market is the lack of
background verification of the previous owner.

12. The online used two wheeler market has been
emerging with the rise in the popularity of e-
commerce platforms in the country. Online
platforms have enabled India users to trust
online platforms and make high value
transactions online using their debit and credit
cards. The sale of used-two wheelers has always
been traditionally channel through unorganized
dealers or sellers themselves. However, with the
growth of organized used car market and the
rise in the popularity of automobile classified
portals, the C2C channel has been preferred by
consumers to eliminate intermediaries.

13. In terms of sales volume, the online two wheeler
market has enlarged at a CAGR of ~% from
January 2015-December 2015. The market
witnessed an average of nearly ~% growth in
the initial 3 months. Effective marketing and
branding strategies adopted by players have
been the key factors that have fuelled the
growth of this market. It has been observed that
out of the orders placed on online platforms,
only ~% of the orders were sourced from mobile
platforms which include mobiles and tablets. On
the other hand, ~% of the orders were placed
through desktop platform during the year 2015.

14. • Source: https://www.kenresearch.com/automotive-transportation-and-
warehousing/automotive-and-automotive-components/india-preowned-two-wheelers-
market-report/6912-100.html
• Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
• Website : www.kenresearch.com

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