Friday | Apr 18 2025 | 07:47:37 PM
For millions of Indians, a two-wheeler is not just a convenience, it is their lifeline. To go to work, to run a small business, or to deliver personal items, who do not want a two-wheeler to zoom in between the lanes of heavy traffic? But what has forced many to think twice about buying new two-wheelers these days is the average increase in their price of about 30-40 per cent over the last few years. Thus, used two-wheelers gained much importance as they are almost as reliable and give the same performance as new bikes for just a fraction of the actual cost.
There is tremendous growth for the refurbished two-wheeler business in India. Around 8 million pre-owned two-wheelers are sold annually, and this space currently accounts for approximately 50 per cent of the market for new two-wheelers. In the forthcoming years, this segment is believed to register a growth of 12.5 per cent each year, taking it to 55.8 million units by 2027. The used two-wheeler market is envisioned to cross $30 billion by 2029 as financial integration challenges have become increasingly important in consumers' determination to improve financing and the general customer's ever-increasing confidence in pre-owned vehicles.
Why Refurbished Two-wheelers are becoming more popular
Until recently, the Indian used two-wheeler market was largely unorganised, only 2-3 per cent of total pre-owned two-wheeler sales accounted for sales from the organised sector. The customers were left with no choice but to go to local dealers or individual owners, without any assurance regarding the condition or legal status of the bike. A lot of customers encountered problems such as concealed mechanical faults, fudged odometers, or missing documents, which made second-hand buying a gamble.
Yet, the industry has shifted greatly over the last few years. Structured participants have come forward with certified refurbished two-wheelers that go through intensive checkups and quality inspections before being put up for resale. They repair, test, and restore them to as good as new, ensuring safety and performance requirements. A few retailers even provide warranty, free servicing, and paperwork-free buying, so refurbished cycles are an even safer investment proposition now than before.
Another key reason for the increased demand for refurbished two-wheelers is affordability. For most middle-class families, students, and gig economy workers, purchasing a brand-new two-wheeler is a substantial financial strain. With increasing fuel costs and daily expenses, laying out extra for a new bike is not always feasible. A refurbished bike that is well-kept offers the same mobility advantage at a lower initial cost, so individuals can cut costs without losing quality.
Financing makes Pre-owned Two-wheelers more Affordable
The greatest issue for the used two-wheeler industry in recent times has been the non-availability of loans. Unlike fresh vehicles, which are available immediately on loan, pre-owned bikes used to necessitate paying full price, discouraging access to many prospects. But those times are altering.
Today, only 6 per cent of used two-wheelers are financed, but this is likely to increase as financial companies see the potential of the used market. In fact, used vehicle finance penetration is projected to rise from 21 per cent in 2021 to 35 per cent by 2025, driven by digitisation and growing partnerships between OEMs, banks, and NBFCs. With more banks and NBFCs stepping into the market, providing loan facilities, enable customers to extend their payments. As credit facilities get better, used two-wheelers will become even more affordable, particularly for first-time vehicle buyers.
The Gig Economy is Driving Demand
Ever since the sudden growth of the gig economy in India has surged, the demand for affordable mobility solutions. Delivery riders, tiny entrepreneurs, and first-time job-seekers all depend on two-wheelers for their livelihoods, and therefore a refurbished bike allows them to begin without a huge upfront investment.
As India's gig economy is estimated to burgeon to 23.5 million by the year 2030, the need for affordable transport will increase even further. Second-hand bikes happen to be the solution for anyone who needs a reliable vehicle but just cannot afford a new one. This trend is especially pronounced in cities that are experiencing a rapid proliferation of app-based delivery and ride-sharing services.
It is interesting to note the increasing female representation in the used two-wheeler segment. Two-wheelers have become a daily mode of transportation for many students, homemakers, and working professionals. The used option makes ownership more economical for these individuals. Increased demand by women riders is a clear sign of changing patterns of mobility wherein more women are on personal transport as opposed to public transport.
Digital platforms are indeed changing the buying experience.
Earlier, purchasing a second-hand two-wheeler used to involve going to various dealers, bargaining, and worrying about cheating. But with the advent of online websites, the experience has changed for the better, becoming more transparent and easy.
Nowadays, consumers can view listings, contrast prices, and even schedule test drives online. Mirroring this increasing affinity, the Indian used two-wheeler market online has been registering robust momentum and is projected to grow at a double-digit positive CAGR until FY 2026. Others provide virtual inspection of vehicles and doorstep delivery, avoiding the necessity for physical visits. Digital doc services also hasten and simplify title transfers as well as financing applications, taking away hours and effort needed to finalise a purchase.
Organised buy experiences where customers can browse online, book test rides, and complete purchases at authorised showrooms have already been launched by many leading companies. These sites form a seamless, well-blended digital and physical validation into easy confidence-building refurbishment of two-wheelers for an increasingly popular consumer choice.
Challenges and the Road Ahead
The used two-wheeler market is still facing headwinds despite rapid growth. One of the reasons for the imbalance in the used bike pricing market is a lack of transparency in price determination because of the seller's discretion. To counter this, some companies have introduced AI-based pricing models that examine parameters such as vehicle condition, demand, and market realities to give a fair evaluation. Also, keeping a record of service history is an issue.
Most of the time, the two-wheeler owners get their vehicles serviced in local garages that do not maintain records. Some websites are now employing technology to scan vehicles for wear and tear so that buyers can make smart buying choices.
The Future of Refurbished Two-wheelers in India
The used two-wheeler market is poised to become a force to reckon with in India's mobility market. Due to the enormous untapped potential of the industry, organised players will keep increasing their penetration, enhancing transparency, and enhancing quality control. With growing digital adoption and ease of financing, the market will be even more within reach of a broader base of buyers.
Also, for many Indians, choosing to purchase a refurbished two-wheeler has gone beyond savings—it's becoming the smart and practical decision. It could be a college-going student in need of an economical vehicle, a gig employee requiring a backup bike, or even a household shifting from commuting by public transportation—refurbished bikes suit all of these.
As the market matures and increasing numbers of buyers appreciate the worth of certified, high-quality refurbished bicycles, the future of India's two-wheeler market is poised for a dramatic shift. With trust, affordability, and convenience at its heart, the refurbished two-wheeler market is not only expanding—it's revolutionising mobility for a new generation of riders.
The above article has been written by Narain Karthikeyan, Founder of DriveX.
