The India Used Two-Wheeler Market size is USD 31 million, with growth, share, players, trends, segmentation, outlook, challenges, opportunities, and future.

Market Overview

India Used Two-Wheeler Market Overview

The market was valued at USD 31 million in 2023 and is expected to reach USD 55.8 million by 2028, reflecting strong growth potential over the forecast period. Local and unorganized players have dominated the market so far and are expected to continue contributing significantly to its expansion. Within the two-wheeler segment, motorcycles account for nearly 75% of total two-wheeler sales in FY 2023, with commuter motorcycles emerging as the most preferred category due to their affordability and practicality. In 2023, there was an increased focus on improving product quality, supported by the introduction of stricter certifications and quality checkpoints to ensure better vehicle standards for consumers. Key players operating in the online used two-wheeler market include BikeDekho, BikeWale, OLX, and Quikr. However, the market continues to face challenges such as the identification of unauthorized dealers and the limited availability of affordable and reliable financing options.

India Used Two-Wheeler Market Definition

India Used Two-Wheeler Market by Sales Volume: It has been defined as the sales volume for second hand two wheelers (motorcycles and scooters) including both domestically produced and imported bikes (origin). The sales volume of Used Two Wheelers includes the sales from Second Hand, Third Hand, or more sale of the used vehicle.

India Used Two-Wheeler Market by Gross Transa: It is defined as the total transaction value generated from sales of second hand two wheelers (motorcycles and scooters) including domestically produced and imported bikes. The prices have been considered at the dealer’s level.

India Used Two Wheelers Market by Net Revenue: Net Revenues have been defined as the income generated from transaction of pre-owned 2-wheeler, which only include the margin proportion which is charged by organized and unorganized offline dealers on two-wheeler sales. Net Revenues include the income generated by online platforms as well which comes from sources such as subscription model, commission model, advertisement, valuation and other value-added services (inspection, road assistance, ownership transfer assistance and financial assistance).

India Online Used Two Wheelers Market: India online used two wheelers market has been defined on the basis of commission fee generated from the sales of used two wheelers including motorcycles and scooters in India conducted through online platforms. It also includes the revenues generated from subscription model, commission model, advertisement, valuation and other value-added services including revenues from paper work, insurance and others. The sales made by the offline dealers by listing their inventory on any online portals has been considered as a part of online sales and hence considered in the revenues for online used two wheelers market, only to the extent of revenues instead of sales volume. It is understood while computing the overall market that the sales of used 2-wheeler is always made through offline mode. Online just acts as a platform to list down inventory of used 2-wheeler and hence these online companies generate revenues for providing these services.

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 included online and offline sales of used two wheelers between consumers and businesses. This may take place among people who don’t know each other.

Organized Sector: Defined as dealers having presence of 2 stores or more than 2 stores in >1 city pan-India and operates an online marketplace. In addition, organized players are the ones which provide printed invoice at the time of transaction to the buyer and seller of the vehicle.

Unorganized Sector: Defined as dealers having presence of <2 stores operating in a single city. In addition, unorganized players are the ones which do not provide printed invoice at the time of transaction to the buyer and seller of the vehicle.

Taxonomy

India Used Two-Wheeler Market Ecosystem

India Used Two-Wheeler Industry Analysis

Depreciation norms

In order to avoid any disputes on allowed depreciation (for vehicles > 4 years old), following depreciation schedule was decided: For every quarter during 1st year 4.0%; For every quarter during 2nd year 3.0%; For every quarter during 3rd year 2.5%; For every quarter during 4th year 2.0%; And thereafter subject to an overall limit of 70.0%. For vehicle’s value in foreign currency need to be converted into INR by rate of exchange notified by Indian Customs for said purposes

Vehicle Import Specification

Vehicle shall not be older than three (3) years from the actual date of manufacturing; Vehicle shall conform to the provisions of the Motor Vehicle Act, 1988 (MVA 1988); At the time of importing, Company must submit a certificate notified by Government allowing import of used two-wheeler to the testing agency. The said vehicle conforms to regulations specified in MVA & original homologation certificate previously issued at the time of manufacture.

Vehicle Testing Norms

Before clearance, the company must submit the vehicle for testing & thereby attain certification from following agencies: Vehicle Research and Development Establishment, Automotive Research Association of India, Central Farm Machinery Training and Testing Institute.

Vehicle Life

Minimum road worthiness for a period of five (5) years from the date of importation into India with assurance for providing service facilities within the country during the five-year period. Consumer required to submit declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies

Increased Focus on Product Quality

With increasing market awareness, the buyer decision-making process in the used two-wheeler market has gradually shifted from being primarily price-driven to being more focused on product quality and overall vehicle condition. Buyers are now paying closer attention to comprehensive quality check parameters, including documentation and paperwork verification, inspection of vehicle accessories, engine capacity assessment, bodywork evaluation covering fairings, windshields, and luggage bags, as well as checks on front and rear fenders, paint quality, tyres, braking systems, and performance through road tests. Online platforms are playing a crucial role in enabling informed purchase decisions by offering transparent information such as product ratings, user reviews, city-wise on-road pricing, dealer-wise comparisons, and the regular publication of articles and blogs that educate consumers about vehicle quality, pricing trends, and buying best practices.

Rigorous Checkpoints & Certifications

Organized players and online platforms in the used two-wheeler market have increasingly adopted rigorous inspection checkpoints for every vehicle sold to ensure consistent quality and reliability for customers. These standardized inspection processes help verify the condition of used two-wheelers and play a critical role in building customer trust and loyalty, as buyers gain confidence in purchasing certified and quality-assured vehicles. By offering transparent and verified units, dealers are able to strengthen long-term customer relationships. Additionally, some online platforms, such as Droom, provide estimated pricing and valuation services that help buyers and sellers determine fair market prices, ensuring transactions are conducted at competitive and transparent price points.

Market Consolidation

The unorganized used two-wheeler market in India is gradually transitioning toward a more formalized structure. Market consolidation driven by the entry of original equipment manufacturers (OEMs) and established two-wheeler dealerships into the organized used two-wheeler segment has significantly increased consumer awareness and preference for certified pre-owned two-wheelers. These certified pre-owned vehicles undergo comprehensive inspection and refurbishment processes to ensure quality, safety, and reliability, providing consumers with greater confidence and peace of mind by offering products that are close to new in terms of performance and condition.

Dominance by Unorganised Market

The market is highly fragmented in nature, 99% market share occupied by unorganized segment. Customers prefer informal channels- local dealers, friends/relatives, mechanics etc. offering limited choices & deals. Price conscious & lower income consumers prefer offline traditional channels.

Issues Related to Verification

Unorganized & Local Dealers often skip on verification process especially for low value two wheelers. Information like criminal record, legal cases, accidental claims etc. are often not revealed to potential owner. In order to avoid being misled, consumers prefer buying new vehicles. Transfer of documents is the major challenge for used two wheelers.

Focus on new 2W sales by OEM

OEMs as well as OEM dealers are interested in selling only new two wheelers for generating their major part of revenue and profitability. It is also being supported by the new two-wheeler incentives at the dealerships.

Difficulty in Financing

Majority of financing options offered by financial institutions are for used cars, owing to low transaction size ranging from INR 35,000-50,000, which is usually not feasible for banks to provide loans of small amount. Those with lower income need financing for two wheelers, who often lack good credit profile.

Stricter norms by the Government

Maturing statutory requirements and emission norms are also the threat for the growth of pre-owned industry. Due to strict emission norms, it is getting difficult to sell old age two wheelers.

India Used Two-Wheeler Market Segmentation, FY’2023

Segmentation based on Organized & Unorganized Market

The unorganized sector of the India Used Two-Wheeler market contributes up to 99.4% of the overall market whereas the organized sector contributes only 0.6% 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.

Segmentation based on C2C and B2C Sales

The B2C segment has a dominant share with 56.4% of the overall sales whereas C2C segment contributes up to 43.6%. 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 in the near future.

India Used Two-Wheeler Future Outlook

The Indian used two-wheeler market is expected to grow from USD 31 million in FY’23 to USD 55.8 million by 2028, registering a CAGR of 12.5%, while the used-to-new two-wheeler ratio is projected to increase from 1.95 in FY’23 to 2.07 by FY’28. The availability of verified sellers on online platforms, supported by detailed inspection reports, structured pricing mechanisms, and value-added services, is enhancing transparency and convenience in the buying process. This improved ecosystem is attracting a wide range of consumers, including collegegoers, working professionals, and bike enthusiasts who are looking for affordable yet high-performance two-wheelers at reasonable prices.

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India Used Two-Wheeler Market (2023-2028)

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