# India Used Two-Wheeler Market (2023-2028) --- ## Report Summary The India Used Two-Wheeler Market size is USD 31 million, with growth, share, players, trends, segmentation, outlook, challenges, opportunities, and future. --- ## India Used Two-Wheeler Market Table of Contents (Toc) Table of Contents - 1. India Used Two-Wheeler Market Overview - 1.1. Market Highlights - 1.2. Definition - 1.3. Taxonomy - 2. India Used Two-Wheeler Market Size - 2.1. Used Bike Sales in FY'23 - 2.2. Market Size Scenario on the basis of GTV, Volume Sales & Average Price - 3. India Used Two-Wheeler Ecosystem - 4. India Used Two-Wheeler Market Segmentation - 4.1. Segmenation on Organised & Unorganised Market - 4.2. Segmentation on C2C and B2C sales - 4.3. Segmentation on Type of 2W and Type of Motorcycles - 4.4. Segmentation on Stock Piece & Customised sale and Domestic Production & Import - 4.5. Segmentation on basis of regional demand - 5. India Used Two-Wheeler Industry Analysis - 5.1. Government regulations - 5.2. Trends & Recent Development - 5.3. Growth Constraints - 6. India Used Two-Wheeler Competition Scenario - 6.1. Sales on the basis of Volume FY'23 - 6.2. Cross Comparison between Major Players in India Used Two-Wheeler market - 6.3. Market share of the players in India Online Used Two-Wheeler market - 6.4. Cross Comparison of Major Players in India Online Used Two-Wheeler market - 7. India Used Two-Wheeler Market Customer Profile Analysis - 7.1. By Age - 7.2. By Income - 7.3. By Gender - 7.4. Online Vehicle Buying Process - 7.5. Buying Criteria - 7.6. Selling Criteria - 8. India Used Two-Wheeler Future Outlook - 8.1. Future Market size - 8.2. Future Market Segmentation - 8.3. Future Growth Drivers - 8.4. Opportunities for Future Growth - 9. Research Methodology - 10. Table of Contents - 11. Frequently asked Questions (FAQs) --- ## India Used Two-Wheeler Market Overview India Used Two-Wheeler Market Highlights 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. *The market has been valued at 31 Mn in 2023 and is expected to touch 55.8 Mn in 2028.* --- ## India Used Two-Wheeler Market Definition ### 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. ### Fundamental Definitions **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 | ID | Parent ID | Label | | --- | --- | --- | | 1 | | Two-Wheeler Market Segmentation | | 2 | 1 | Engine Capacity | | 3 | 2 | Scooters | | 4 | 2 | Motorcycles | | 5 | 1 | Vehicle Type | | 6 | 5 | Commuters | | 7 | 5 | Sports Bikes | | 8 | 5 | Cruisers | | 9 | 5 | Scooters | | 10 | 1 | Intended Use | | 11 | 10 | Daily Commuters | | 12 | 10 | Performance Enthusiasts | | 13 | 10 | Adventure Bikes | | 14 | 1 | Electric Two-Wheelers | | 15 | 14 | Electric Two-Wheelers based on Range | | 16 | 14 | Electric Two-Wheelers based on Power | | 17 | 14 | Electric Two-Wheelers based on Features | | 18 | 1 | Premium & Luxury Segments | | 19 | 18 | High-End Bikes with Advanced Features & Performance | --- ## India Used Two-Wheeler Market Ecosystem ### Market Ecosystem **Ecosystem of India Used Two-Wheeler Market** India Used Two-Wheeler market consists of 2W OEM Certified Dealers, Online Classified/Marketplace Platforms, Unorganised Dealers & Offline Organised Dealers. The market faces challenges because of its unorganized nature; issues related to verification & difficulties faced by financing. --- ## 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. ### Segmentation based on Type of 2W and Type of Motorcycles Amongst the sale of two-wheeler vehicles, the sales of motorcycles have been at 75 per cent whereas the sales of scooters have been at 25.5 per cent. Segmenting this further, customers preferred commuter bikes. Commuter bikes contributed up to 77.5 per cent. of the sales followed by Sports bikes which stood at 13.5% and other bikes had a 9 per cent share. Working professionals prefer Commuter bikes because of its higher mileage & low maintenance costs. Motorcycles have power, dramatically better throttle response, better brakes, larger wheels with better traction and far better stability at any speed, particularly at higher speeds. Motorcycles have power, dramatically better throttle response, better brakes, larger wheels with better traction and far better stability at any speed, particularly at higher speeds. ### Segmentation based on Stock Pieces & Customized Sales & Domestic Production & Exports On the basis of stock pieces & customized sales, the customized sales dominated the market with 76 per cent of total contribution whereas stock piece contributes up to 24 per cent. One reason this market dominates is, the customers usually seek customizations such as seat covers, alloy changes, mirror panes etc. However, customisation produces adverse impacts for both bike performance & driver such as safety issues, warranty, insurance policy etc. Therefore, customization is not preferred. Another disadvantage is the high customisation costs which start from INR 20,000. On the basis of domestic production & imports, domestic production has dominated the market at 99 per cent whereas imports have been at 1 per cent. The imports have reduced due to COVID-19 restrictions. Additionally, the high-income consumers prefer buying new bikes than imported used bikes. ### Segmentation on the basis of 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 Industry Analysis ### Government Regulations **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 ### Trends & Development **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. ### Challenges in Growth **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 Future Outlook ### India Used Two-Wheeler Future Market Size 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. --- ## Frequently Asked Questions Find quick answers to common questions about India’s used two-wheeler market **Q: How big is the used two-wheeler market in India?** A: India Used Two-Wheeler Market has been valued at 31 Mn in 2023. **Q: What is the future outlook of India Used Two-Wheeler Market?** A: India Used Two-Wheeler Market is expected to reach 55 Mn in 2028 at a growth rate of 12.5%. **Q: Who are the key players of India Used Two-Wheeler Market?** A: Honda, TVS, Royal Enfield, Ducati are key players in India Used Two-Wheeler Market. **Q: What factors drive India Used Two-Wheeler Market?** A: Economic uncertainty making people wary about spending on new vehicles and emergence of more organized & online platforms are driving the market. **Q: What are challenges of India Used Two-Wheeler Market?** A: Lack of quality checks & limited financing options for used two wheelers can hinder the market.