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Used Two Wheeler Market Expected to Grow over 20% in the Coming Years: Ken Research
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,
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 sales continued to incline at a healthy pace with the increase in new two-wheeler sales growth which ultimately expanded the supply of used vehicles in the market. With the rising popularity of gearless scooters, their demand amongst the women and youth picked up.
According to Ken Research The used two-wheeler market has been witnessing a speedy growth in terms of the revenue generated. Though the market is still dominated by small unorganized players, the entry of organized marketplaces and Original Equipment Manufacturer (OEM) has led to structural changes particularly in the year 2015. The market has been able to achieve a fair growth despite the effect of economic slowdown. The major reason behind is that the inability of consumers to purchase new vehicles induced them to opt for pre-owned bikes and scooters.
Due to the unorganized nature of this market, online marketplaces such as Droom, CredR and Bikerhighway have emerged in the used two-wheeler space. Further OEM’s such as HMSI have set up their pre-owned and certified vehicle outlets to offer good quality products that have undergone stringent quality checks. However, the contribution of such players to the overall used-two wheeler market is insignificant.
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 and credit cards. The growth of online advertising, which has fuelled the rise of online classified platforms such as OLX, Quikr, Gaadi.com, Carwale.com and others have revolutionized the way in which pre-owned vehicles have been sold in the country. 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, according to the Research Analyst, Ken Research.
It is believed that an emerging economy such as that of India offers huge potential for the used two wheeler market. The used two-wheeler dealers can utilize the current economic situation to provide value services and excellent second hand vehicles to improve their individual sales. In the coming few years, it is expected that the used two wheeler market will continue to flourish as more buyers will congregate the used two wheeler market seeking great deals as it is an excellent buying decision for an individual. 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.