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PUBLISHER: Ken Research Private Limited | PRODUCT CODE: 1428550

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PUBLISHER: Ken Research Private Limited | PRODUCT CODE: 1428550

India Used Two Wheeler Market Outlook to FY 2028

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Market Overview:

Amongst 2 wheelers i.e., scooters & motorcycles, 75% of 2 wheelers sold in FY'23 are motorcycles. Amongst motorcycles, commuting bikes have been the most preferred option. In 2023, there has been increasing focus on product quality & ensuring rigorous certifications & checkpoints to ensure quality of vehicle sold to consumer. BikeDekho, BikeWale, OLX, Quickr are the top players in the online used two-wheelers market. The major challenges in this market are the identification of unauthorized dealers & lack of reasonable financing options.

    • India Used Two Wheeler Market

New 2W Sales in the Indian automotive industry have suffered a major slump in FY'21 and FY'22, with negative growth because of introduction of the BS VI norms, which increased the price of vehicles coupled with COVID pandemic posing lockdown across the country. The growth rate of used Two-Wheelers declined in FY'20, as consumers kept their Two-Wheelers with a view of retaining them for a longer period, since BS VI standards increased the price of new vehicles. Post which the sales increased in FY'22 and FY'23 owing to the rising average household income in India and change in consumer buying behavior.

Hero Sure has generated the largest sales volume of 60,000 in FY'23. Their key strategy involved operations via dealerships which targeted Tier 3 & 4 cities along with rural areas. Hero Sure is followed by Honda Best Deal which has a sales volume of 32,000 who have 200+ franchisees in India which work on Exchange & Buy-Sell Model. Most of these players follow a mixed approach of maintaining an offline & online presence and ensure adequate distribution & maintaining relationships post-sales. Ducati offers used bikes with less than 5 years with certified mileage lower than 50,000 km, after passing 35 rigorous tests.

    • India Used Two Wheeler Industry

India Used Two-Wheeler Market Analysis

Positive Factors affecting the India Used Two-wheeler market are increased focus on product quality, rigorous checkpoints and certifications and market consolidation in India.

Major challenges in India used two-wheeler market are identification of unauthorized dealers & lack of reasonable financing options.

Regulatory compliances like depreciation norms, Vehicle Import Specification, Vehicle Testing norms and Vehicle life are influencing the India Used Two-wheeler market.

Indian Online Used Two-Wheeler Market is a consolidated market with top four companies contributing up to ~60 per cent to the overall revenues, which includes BikeDekho, OLX and Bike Wale and Quikr.

Major segments of this market are based on organized and unorganized sector, C2C and B2C market and others.

Key Trends by Market Segment:

By Organized and unorganized Market: The unorganized sector of the India Used Two-Wheeler market contributes up to ~99% of the overall market whereas the organized sector contributes only ~1% of the revenue. The unorganized sector gains their revenue from commission received from sale of used vehicles and Repair & Maintenance services. The synergy with local unorganized players is expected to escalate the market further.

Organized Sector: Defined as dealers having presence of 2 or more stores in >1 city pan-India and operates on an online marketplace. Majorly OEM's form the organized market in India.

    • Unorganized Sector: Defined as dealers having presence of

India Used Two Wheeler Market Analysis

By C2C and B2C Sales: The B2C segment has a dominant share with ~57% of the overall sales whereas C2C segment contributes up to ~44%. The preference of buying from Friends & Family have been driving the C2C market and better value-added services are expected to drive the B2C market due to increasing market organization, the B2C segment is increasing & is expected to continue growing soon.

C2C Model: It includes online and offline sales of used Two-Wheelers between consumers themselves. This may take place among people who know each other such as acquaintances, friends, or relatives.

B2C Model: It includes offline sales of used Two-Wheelers between consumers and businesses, for which the leads are either generated online or directly through Physical Walk-ins. This may take place among people who don't know each other.

    • India Used Two Wheeler Market Forecast

By Regional Demand: Based on volume, the number of used two-wheeler vehicles, 75 per cent of its usage occurred in urban areas and 25 per cent of sales in rural areas. In India, cities like Delhi NCR, Mumbai, Pune & Bangalore have been high potential areas for growth & Pune has displayed medium growth potential. Factors like migrant population, lack of public transport, growing IT hubs with increasing workforce & traffic congestions are few factors which drive the market's growth.

    • India Used Two Wheeler Market Analysis

Competitive Landscape:

Major Players in India Used Two-Wheeler Market

India Used Two Wheeler Market Trends

India Used Two-Wheeler market consists of fragmented & unorganized players, with low margins dominating the space.Organized Market is Moderately concentrated with top players occupying the used 2W sales, includes Honda Best Deal, CredR, Best Value. The market has been at a late growth stage with CAGR (FY'2023- FY'2028) of 12.5% (Sales Volume).

Indian Online Used Two-Wheeler Market is a consolidated market with top four companies contributing up to ~60 per cent to the overall revenues.

BikeDekho is one of the largest contributors in the market share at approximately 40 crores in FY'23 and others have contributed ₹44.8 crores.

Companies such as Bykemenia and Beepkart have entered the online used two-wheeler market since FY'2021 and further companies are expected to enter the online space soon.

These companies are slowly shifting their focus towards Tier II, Tier III cities and Rural areas from Tier I cities, as lot of demand is generated from such regions.

Companies in the online space are expanding their services such as Tie ups with NBFCs, Loan Assistance, Extended warranty to compete in the market and garner market share.

India Used Two Wheeler Market Revenue

Recent Developments:

In 2021, Bike wale Pioneered as the first auto portal to be listed in August 2021. Launched a major subsegment named as car-wale for used cars market in India. They Acquired OLX Classifieds and Auto Business in India in 2023.

Organized players and online platforms have started offering Rigorous check points through inspection for each used Two-Wheeler sold to ensure the quality of the vehicle sold to the customer.

Some online platforms such as Droom offer services for estimated pricing for a vehicle to ensure the customer sells/buys the vehicle at best prices.

Market consolidation owing to the entry of OEMs and 2W Dealerships in the organized used 2W market has created awareness and preference for certified pre-owned 2Ws in India.

Future Outlook:

India Used Two Wheeler Market Share

India Used two-wheeler market is expected to reach ~55.8 Mn units in 2027 due to increasing vehicle demand, urbanization and increase in disposable income.

Entry of new OEMs & existing OEMs like Honda Best Deal, Best Value Suzuki are expected to further expand their network across country

With popularity of online classifieds like OLX, Quikr & emergence of new small dealers, unorganized sector expected to dominate the market in future as well

With the growing evolvement of electric 2W in India, there will be multiple organized companies and OEM which will collaborate with electric 2W companies to run an exchange program. In this program, used 2W vehicles can be exchanged for electric 2W.

For instance, Ampere Electrichas partnered with used two-wheeler marketplace CredR to facilitate the exchange of pre-owned bikes for its electric scooters. Under the partnership, customers will be provided with convenient hassle-free exchange of used two-wheelers for Ampere e-scooters and receive their new vehicle within days.

Product Code: KR1395

Table Of Contents

1. Executive Summary

  • 1.1 Executive Summary (Industry Overview, Challenges & Trends)
  • 1.2 Executive Summary - Used Two-Wheeler Financing

2. India Used Two-Wheeler Market Overview

  • 2.1 Two-Wheeler Landscape in India
  • 2.2 Overview of Used Two-Wheeler Industry
  • 2.3 Value Chain Analysis of India Used Two-Wheeler Market
  • 2.4 New Two-Wheeler Vehicle Market (FY'2023-FY'2028E)
  • 2.5 Online Market for Used Two-Wheeler
  • 2.6 Mobility Challenges in India
  • 2.7 Business Cycle and Genesis
  • 2.8 Cross Comparison of Used Two-Wheeler Industry with Other Countries
  • 2.9 Comparison Between Unorganized and Organized Dealers on The Basis Of Revenue Streams, Margins, Presence And Target Audience Etc.
  • 2.10 Type of Organized & Unorganized Dealers in the Indian Used Two-Wheeler Market
  • 2.11 Different Type of Stakeholders in the Indian Used Two-Wheeler Market
  • 2.12 Overview of Buying a Used Two-Wheeler

3. India Used Two-Wheeler Market Size, FY'2018-FY'2023

  • 3.1 Used Bike sales: Methodology
  • 3.2 Market Size Scenario on the Basis of GTV, Volume Sales and Average Price

4. India Used Two-Wheeler Market Segmentation, FY'2023

  • 4.1 Market Segmentation on the basis of Organized and Unorganized Market, FY'2023
  • 4.2 Market Segmentation on the basis of C2C & B2C Sales, FY'2023
  • 4.3 Market Segmentation on the basis of Type of 2W and Type of Motorcycles, FY'2023
  • 4.4 Market Segmentation on the basis of Stock Piece & Customized Sales and Domestic Production and Imports, FY'2023
  • 4.5 Market Segmentation on the basis of Engine Capacity (100-110 CC, 125-135 CC, 150-200 CC), FY'2023
  • 4.6 Used Two-Wheeler Pricing (By Engine Capacity & By Best Selling Models: Bikes and Scooters)
  • 4.7 Gender and Brand Wise Scooter Preference
  • 4.8 Market Segmentation on the basis of Non-Certified & Certified and Non-Financing & Financing, FY'2023
  • 4.9 Market Segmentation on the Basis of Major Brands, FY'2023
  • 4.10 Market Segmentation on the Basis of Regional Demand, FY'2023

5. Snapshot on Used Two-Wheeler Vehicle Financing, FY'2023

  • 8.1 Major OEM and Online Platform and Their Finance Partner
  • 8.2 Various Business Models for Sale of Used Two-Wheeler Loans
  • 8.3 Financing Penetration and Trends in The Used Two-Wheeler Financing
  • 8.4 NBFC Portfolio and Role of Technology in Future
  • 8.5 NBFC Players Offering Used Two-Wheeler Financing
  • 8.6 Recent Trends and Role of Technology In The Used Two-Wheeler Financing
  • 8.7 Used Two-Wheeler Financing in India
  • 8.8 Financing Norms
  • 8.9 Risks associated with Two-Wheeler Finance

6. Franchise Model

  • 6.1 Overview of Franchisee Based Business Model

7. India Used Two-Wheeler Competitive Scenario

  • 7.1 Sales on the Basis of Volume, FY'2023
  • 7.2 Cross Comparison Between the Major Players in the Used Two-Wheeler Market
  • 7.3 Cross Comparison Between the Major Players in the Used Two-Wheeler Market
  • 7.4 Strengths and Weakness of Organized Players
  • 7.5 Case Study: BikeWale (Car Trade Group)
  • 7.6 Case Study: Honda Best Deal

8. Snapshot on Online Used Two-Wheeler Market (FY'2023-FY'2028F)

  • 8.1 Major Pain Points and Solutions
  • 8.2 Online Used Two-Wheeler Market (FY'2023 - FY'2028F)
  • 8.3 Cross Comparison on the Basis of Business Model
  • 8.4 Timeline for a customer process
  • 8.5 Competitive Scenario
  • 8.6 Market Share of The Players in the Online Used Two-Wheeler Market
  • 8.7 Market Share of Online Classifieds, October, 2023
  • 8.8 Cross Comparison of Major Players in the Online Used Two-Wheeler Market
  • 8.9 Strength and Weakness of Major Players in the Online Used Two-Wheeler Market

9. Customer Profile Analysis

  • 9.1 Online Vehicle Buying Process
    • 9.1.1 Buying Criteria
    • 9.1.2 Selling Criteria
  • 9.2 Findings on Consumer Analysis
  • 9.3 Online vs Offline Business Stream (on the Basis of Lead Generation)
  • 9.4 Customer Profile Statistics-
    • 9.4.1 By Gender (Male, Female), FY'2023
    • 9.4.2 By Age Group, FY'2023
    • 9.4.3 Income Level, FY'2023

10. Industry Analysis

  • 10.1 Government Regulations
  • 10.2 Trends and Development
  • 10.3 Growth Constraints
  • 10.4 SWOT Analysis

11. Future Market Size, FY'2021-FY'2026E

11.1Future Market Size, FY'2023 to FY'2028E (By Sales Volume)

  • 11.2 Opportunity Landscape for Future
  • 11.3 Future Market Segmentation by B2C & C2C by Volume, FY'2028
  • 11.3 Future Market Segmentation by Organized & Unorganized, FY'2028
  • 11.4 Future Growth Drivers for Used Two-Wheelers in India

12. Analyst Recommendations

  • 12.1 Potential Market Opportunity
  • 12.2 Sales Channels
  • 12.3 Profitability Model for Used 2W Dealer
  • Research Methodology
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Jeroen Van Heghe

Manager - EMEA



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Manager - Americas


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