India Preowned Two Wheelers Market |India Used Two Wheelers Market - PowerPoint PPT Presentation

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India Preowned Two Wheelers Market |India Used Two Wheelers Market

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The India used two-wheeler market has displayed a strong growth over the five year period from 2010-2015 on account of increasing income of households, immigration of working individuals in search of work or education as well as greater availability of used two-wheelers in the country. The used-two wheeler market in India has underscored a growth of ~% in terms of sales volume over the period 2010-2015. Further, online-automobile portals became a medium through which used vehicles started selling online. 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. The market recorded revenue of INR ~ million in 2010, which enlarged to INR ~ million by 2015. – PowerPoint PPT presentation

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Title: India Preowned Two Wheelers Market |India Used Two Wheelers Market


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India Used Two Wheeler Market Report 2020
Ken Research
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  • 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.

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  • 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

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • Source https//www.kenresearch.com/automotive-tra
    nsportation-and-warehousing/automotive-and-automot
    ive-components/india-preowned-two-wheelers-market-
    report/6912-100.html
  • ┬áContact Ken ResearchAnkur
    Gupta, Head Marketing CommunicationsAnkur_at_kenre
    search.com91-9015378249
  • Website www.kenresearch.com

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