Sales of Used Bikes through Bike Marketplace Outlook (2022–2032)

Global Market (Used 2-wheeler Market)

· Historic: The market was valued at USD 32 Bn in 2017 and grew at a CAGR of 4% from FY2017–21.

· Forecast: From 2022–32: The market is expected to grow from USD 43 Bn to USD 68 Bn at a CAGR of 4.6%[source]

Trends

· The countries globally with the largest bike markets are Europe (~23.2% of Gross Revenue), followed by South Asia Pacific and North America. Consumers in China and Western Europe cited a new need for cheap transport modes during the epidemic to preserve social distance and continue delivery services.

· The 2-wheeler market is very popular in the market due to its affordability and convenience to travel even in highly congested traffic areas.

· Plus, the introduction of new models that are costlier than the older models has shifted consumer focus to e-commerce for used bikes. While a significant number of buyers prefer to buy the bikes (2-wheelers) in person, forming a closed-loop ecosystem, the demand is increasing at a steady pace.

· Sales of bikes through used bike eCommerce have increased on the back of the efforts taken by used bike dealers going digital with their marketing initiatives. Numerous websites emerge on the web, which either help end users with the purchase of used bikes through marketplaces or showcase the portfolio of used bikes for achieving offline sales.

· Urbanisation is also one of the major factors that is influencing the use of bikes (2-wheelers).

· The automobile industry saw a severe downturn in sales due to the COVID-19 Pandemic as supply chains were disrupted and end users began to focus only on essential commodities. The used bike marketplace, in turn, has got better after the implications of the pandemic since most people are avoiding public transit to avoid contracting or spreading the illness.

· With the emergence of e-commerce platforms, the sales of used bikes through the C2C model (~62.8%) have outpaced the B2C (~37.2%) segment.

· Bikes ranging from 150 CC to 200 CC constitute the largest segment of the market, as reported by used bike market analysis. It occupies almost 27.5% of the total sales achieved by the market.

Problems

· The industry faces challenges with the adoption and acceptance of pre-owned bikes. This remains prevalent also due to many fraud instances that take place.

Companies

· CredR, BikeDekho, Bikewale, Mahindra First Choice, Bikers Highway, OLX, Quicker, Bicycle Bluebook, and Triumph Motorcycles, which introduced the used motorcycles segment in India in 2019. In addition to this, the business intends to provide financing options to the customers for its reconditioned or refurbished models.

Indian Market (2-wheeler Market)

Please Note: The used 2-wheeler market in India is not available on any of the internet sources. That is why it has been estimated to be 25–30% of the 2-wheeler market in India.

· Forecast: From 2024–2029, the market is expected to increase from USD 299.18 Bn to USD 347.41 Bn at a CAGR of 3.03%. [source]

· SOM Estimation: The number of 2-wheelers sold in India in 2022 is ~13.5 Mn units. Considering the Used 2-wheeler market to be 25–30% of new sales, this will be 3.375 Mn unit sales annually. The average price of a used 2-wheeler in India is USD 400 (~INR 32,000). The market of used 2-wheelers will translate to roughly USD 1.35 Bn opportunity in 2022.

· This Used 2-wheeler market is expected to grow at a CAGR of 10–15% from 2022–32. [source]

The India Two-Wheeler Market is moderately consolidated, with the top five companies occupying 57.37%. The major players in this market are Bajaj Auto Ltd., Hero MotoCorp Ltd., Honda Motorcycle and Scooter India Pvt. Ltd, Royal Enfield Ltd. India and TVS Motor Company Limited. India has the world’s largest two-wheeler market. Despite the large base, sales of new motorcycles have continued to be strong (20 Mn+ annually), showcasing the massive depth of the market.

This is also evident from the presence of 20k+ OEM showrooms across 800+ cities and towns all over India.[source]

The 2-wheeler market, in general, sees ~30 Mn units exchanged every year. It is extremely unorganised and is characterised by a high trust deficit arising out of opaque pricing, suspect product quality, and absence of after-sales service. Existing classified platforms are the current best alternative but have been unable to adequately solve for trust deficit and provide a seamless buying experience. This has left a large gap to be bridged.