India Two Wheeler Loan Market, By Type (New Two Wheeler & Used Two Wheeler), By Provider Type (Banks, NBFCs (Non-Banking Financial Companies), OEM (Original Equipment Manufacturer), Others (Fintech Companies)), By Percentage of Amount Sanctioned (Less than 50%, More than 50%), By Tenure (Less than 3 Years, 3 & More than 3 Years), By Region, Competition, Forecast & Opportunities, 2019-2029F

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Summary

Report Description

The India two wheeler loan market size is expected to expand during the forecast period. Two-wheelers are an affordable and convenient mode of transportation, have lower maintenance costs and fuel consumption compared to cars, making two wheelers a more affordable option for many people in India, driving the sales of two wheeler, which is expected to increase demand for two wheeler loan market in India during the forecast period.

India Two Wheeler Loan Market Scope

A two-wheeler loan allows customers to buy the motorcycle or scooter or other two wheeler of their choice and pay for it with equated monthly installments (EMIs). Two wheeler loans are available for both new two wheeler & used two wheeler. An individual can avail two wheeler loan form banks, NBFCs (non-banking financial companies), OEM (original equipment manufacturer), and fintech companies. Banks sanction the loan of the individual based on the cost of the two-wheeler and the EMI an individual can pay. An individual must have to repay the two-wheeler loan within a fixed amount of time.

India Two Wheeler Loan Market Overview

Owing to the easy parking and fuel efficiency, two-wheelers are becoming more and more popular in cities of India, which has increased the demand for two-wheeler loans. Banks and Non-Banking Financial Companies (NBFC) are the two main organizations in India that provide loans for the purchase of two-wheelers. In order to attract more buyers and borrowers, NBFCs are developing a variety of lending provisions with less documentation.

According to survey by CRIF High Mark, an RBI-approved credit information bureau, as of June 2022, the value of India's two-wheeler loan portfolio expanded by 10.6% year over year (YoY), while volume increased by 1.6% YoY. Moreover, the domestic sales stood at USD 163.91 thousands in FY2022. Additionally, the two-wheeler market was dominated by the motorcycle category, with sales increasing by more than 60% between FY18 and FY21. As of June 2022, the two-wheeler loans portfolio had outstanding and active loans of USD 10.48 billion and 24.81 million accounts, respectively.

India Two Wheeler Loan Market Drivers

The demand for two-wheelers loan is increasing owing to various factors such as two-wheelers being an affordable and convenient mode of transportation, especially in India where public transport is not well-established. They are also easier to maneuver in traffic and can reach areas where four-wheelers cannot. Moreover, two-wheelers generally have lower maintenance costs and fuel consumption compared to cars, making them a more affordable option for many people. With the rising disposable income of the middle class, more people can afford to buy a two-wheeler. Moreover, the availability of financing options such as two-wheeler loans makes it easier for people to purchase a bike or scooter.

The government's focus on improving infrastructure, such as building more roads and bridges, has made traveling on two-wheelers more accessible and safer. In addition, the availability of online loan applications and the ease of buying two-wheelers online has made it convenient for people to purchase their vehicles and apply for loans without visiting banks and dealerships physically. Therefore, many financial institutions have taken an initiative to give loans on two-wheelers so that an individual can fulfill their need of two wheeler easily.

India Two Wheeler Loan Market Trends

The new trends in two-wheel car loans in India, particularly digitization, is growing the demand for two-wheeler loans. With the development of technology and the widespread adoption of smartphones, digitalization has become the norm. More and more people are opting for online loan application and processing, making the process of availing two-wheeler loans faster and more convenient. Moreover, banks and financial institutions are offering customized loans options based on the customer's profile and requirements. This helps borrowers choose the loan amount, tenure, and interest rate that best suits their needs. In addition, some lenders are offering two-wheeler loans that do not require the borrower to pay an EMI for the first few months. This helps customers manage their finances better and plan their expenses accordingly.

Moreover, many lenders have tied up with two-wheeler manufacturers to offer loans at lower interest rates or other incentives. This has made it easier for customers to buy their preferred two-wheeler model and avail of attractive loan offers. Lenders are placing more emphasis on the borrower's credit score while processing loan applications. Customers with a good credit score can avail of lower interest rates and other benefits also.

India Two Wheeler Loan Market Challenges

With the help of a two wheel automobile loan, anyone can avail the amount required for two wheelers. There are several challenges associated with two-wheeler loans in India, some of which include high interest rates as two-wheeler loans in India often come at high-interest rates, which can make it difficult for borrowers to repay their loans. While two-wheeler loans are widely available in India, they may not be accessible to everyone, especially those who do not have a good credit score or a stable income. Borrowers are required to provide a lot of documentation, such as income proof, identity proof, and address proof, to apply for a two-wheeler loan. This can be a tedious process, especially for first-time borrowers. Some lenders may require borrowers to repay the loan within a short period, which can put pressure on their finances.

Two-wheelers are often used for daily commuting in India, which can increase the risk of accidents and theft. This can make it challenging for lenders to mitigate their risks and offer competitive interest rates to borrowers. While some lenders offer loans for used two-wheelers, the options are limited, and the interest rates are often higher than those for new vehicles. While two-wheeler loans can be a convenient option for those looking to purchase a vehicle, borrowers should carefully consider the terms and conditions of the loan before committing to it.


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Recent Developments in India Two Wheeler Loan Market:

·         The largest motorcycle manufacturer in the world, Hero MotoCorp, and the Bangalore-based Small Finance Bank, Ujjivam SFB, have partnered up to offer two-wheeler financing. This agreement will increase the market penetration of two-wheelers and make it possible for middle-class people to get financial aid for the purchase of two-wheelers.

·         Bajaj Auto’s partnered with HDFC Bank to provide retail financing solutions to customers. Under this, Bajaj Auto customers can access HDFC Bank’s expertise and its hassle-free end-to-end digital services and processes.

·         Federal Bank recently announced that debit cardholders can reserve a two-wheeler at specific Honda Motorcycle, Hero MotoCorp, and TVS Motor stores for just Rs. 1. Two-wheeler loans on debit cards have an interest rate of 17%, and the loan can be repaid over 3/6/9/12 months.

India Two Wheeler Loan Market Opportunities

The market opportunity for two-wheeler loans in India is significant, as two-wheelers are a popular mode of transportation for millions of people in the country. India has a population of over 1.3 billion people, and a significant percentage of them rely on two-wheelers for daily transportation. This represents a vast market for two-wheeler loans. As more people move to urban areas in search of better opportunities, the demand for two-wheelers is expected to increase, driving the growth of the two-wheeler loan market.

With rising income levels, more people are able to afford two-wheelers, but may not have the necessary funds to purchase them outright. This presents an opportunity for lenders to offer two-wheeler loans. Moreover, the Indian government has implemented several policies aimed at promoting the use of two-wheelers, such as offering subsidies on electric two-wheelers. This is expected to drive demand for two-wheelers and two-wheeler loans. With the increasing penetration of digital channels, it is becoming easier for lenders to reach potential borrowers and offer them two-wheeler loans, thereby expanding the market further.

Company Profiles

The major players in the India two wheeler loan market are HDFC Bank Ltd., ICICI Bank Limited, Kotak Mahindra Bank Limited, Axis Bank Limited, Bajaj Finance Limited, Tata Capital Limited, Hero FinCorp, Muthoot Capital Services Limited, Mahindra & Mahindra Financial Services Limited, IDFC FIRST Bank Ltd.

Market Segmentation 

The India Two Wheeler Loan market is segmented based on type, by provider type, percentage of amount sanctioned, and tenure. The market is divided into new two wheeler & used two-wheeler, based on type. Based on provider type, the market is further segmented into banks, NBFCs (non-banking financial companies), OEM (original equipment manufacturer) and others (fintech companies). The market is divided into less than 50% and more than 50% based on percentage of amount sanctioned. Based on tenure, the market is divided into less than 3 years, 3 & more than 3 years. On the basis of region, the  market is divided among north, west, south east.

Attribute

Details

Base Year

2023

Historical Years

2019 – 2022

Estimated Year

2024

Forecast Period

2025 – 2029

Quantitative Units

Revenue in USD Million, CAGR for 2019-2023 and 2024-2029

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Type

Provider Type

Percentage of Amount Sanctioned

Tenure

Region

Regional Scope

North, West, South, East

Key Companies Profiled

HDFC Bank Ltd., ICICI Bank Limited, Kotak Mahindra Bank Limited, Axis Bank Limited, Bajaj Finance Limited, Tata Capital Limited, Hero FinCorp, Muthoot Capital Services Limited, Mahindra & Mahindra Financial Services Limited, IDFC FIRST Bank Ltd.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

Report Scope:

In this report, the India two wheeler loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Two Wheeler Loan Market, By Type:
    • New Two Wheeler 
    • Used Two Wheeler
  • India Two Wheeler Loan Market, By Provider Type:
    • Banks
    • NBFCs (Non-Banking Financial Companies)
    • OEM (Original Equipment Manufacturer)
    • Others (Fintech Companies)
  • India Two Wheeler Loan Market, By Percentage of Amount Sanctioned:
    • Less than 50%
    • More than 50%
  • India Two Wheeler Loan Market, By Tenure:
    • Less than 3 Years
    • 3 & More than 3 Years
  • India Two Wheeler Loan Market, By Region:
    • North
    • West
    • South
    • East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Two Wheeler Loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Two Wheeler Loan market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.    By Gender

4.2.2.    By Age

4.2.3.    By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Loan Availing Decisions

4.5.  Customer Satisfaction

4.6.  Challenges Faced After Purchase

5.    India Two Wheeler Loan Market Outlook      

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Type Market Share Analysis (New Two Wheeler & Used Two Wheeler)

5.2.2.    By Provider Type Market Share Analysis (Non-Banking Financial Companies), OEM (Original Equipment Manufacturer), Others (Fintech Companies))

5.2.3.    By Percentage of Amount Sanctioned Market Share Analysis (Less than 50%, More than 50%)

5.2.4.    By Tenure Market Share Analysis (Less than 3 Years, 3 & More than 3 Years)

5.2.5.    By Region Market Share Analysis

5.2.5.1.        North Market Share Analysis

5.2.5.2.        West Market Share Analysis

5.2.5.3.        South Market Share Analysis

5.2.5.4.        East Market Share Analysis

5.2.6.    By Top 5 Companies Market Share Analysis, Others (2023)

5.3.  India Two Wheeler Loan Market Mapping & Opportunity Assessment

5.3.1.    By Type Market Mapping & Opportunity Assessment

5.3.2.    By Provider Type Market Mapping & Opportunity Assessment

5.3.3.    By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment

5.3.4.    By Tenure Market Mapping & Opportunity Assessment

5.3.5.    By Region Market Mapping & Opportunity Assessment

6.    India New Two Wheeler Loan Market Outlook

6.1.  Market Size & Forecast       

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Provider Type Market Share Analysis

6.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

6.2.3.    By Tenure Market Share Analysis

7.    India Used Two Wheeler Loan Market Outlook

7.1.  Market Size & Forecast       

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Provider Type Market Share Analysis

7.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

7.2.3.    By Tenure Market Share Analysis

8.    Market Dynamics

8.1.  Drivers

8.1.1.    Subsidies Offered by the Government

8.1.2.    Rising Demand of Two Wheeler

8.2.  Challenges

8.2.1.    High Interest Rates

8.2.2.    Risks Associated with Two-Wheeler Ownership

9.    Impact of COVID-19 on India Two Wheeler Loan Market

9.1.  Impact Assessment Model  

9.1.1.    Key Segments Impacted

9.1.2.    Key Regions Impacted

10. Market Trends & Developments

10.1.             Gaining Popularity of Luxury Motorbike Segment

10.2.             Rise in Demand for Electric Two Wheelers

10.3.             Increasing Digitalization

10.4.             Rising Availability of Customized Loans Options

10.5.             Tie-Up of Two Wheeler Manufacturers and Lenders

11. Porter’s Five Forces Model

11.1.             Competitive Rivalry

11.2.             Bargaining Power of Buyers

11.3.             Bargaining Power of Suppliers

11.4.             Threat of New Entrants

11.5.             Threat of Substitutes

12. SWOT Analysis

12.1.             Strengths

12.2.             Weaknesses

12.3.             Opportunities

12.4.             Threats

13. Policy & Regulatory Landscape

14. India Economic Profile

15. Competitive Landscape

15.1.             Company Profiles     

15.1.1. HDFC Bank Ltd.

15.1.1.1.     Company Details

15.1.1.2.     Product & Services

15.1.1.3.     Financials (As Per Availability)

15.1.1.4.     Key Market Focus & Geographical Presence

15.1.1.5.     Recent Developments

15.1.1.6.     Key Management Personnel

15.1.2. ICICI Bank Limited

15.1.2.1.     Company Details

15.1.2.2.     Product & Services

15.1.2.3.     Financials (As Per Availability)

15.1.2.4.     Key Market Focus & Geographical Presence

15.1.2.5.     Recent Developments

15.1.2.6.     Key Management Personnel

15.1.3. Kotak Mahindra Bank Limited

15.1.3.1.     Company Details

15.1.3.2.     Product & Services

15.1.3.3.     Financials (As Per Availability)

15.1.3.4.     Key Market Focus & Geographical Presence

15.1.3.5.     Recent Developments

15.1.3.6.     Key Management Personnel

15.1.4. Axis Bank Limited

15.1.4.1.     Company Details

15.1.4.2.     Product & Services

15.1.4.3.     Financials (As Per Availability)

15.1.4.4.     Key Market Focus & Geographical Presence

15.1.4.5.     Recent Developments

15.1.4.6.     Key Management Personnel

15.1.5. Bajaj Finance Limited

15.1.5.1.     Company Details

15.1.5.2.     Product & Services

15.1.5.3.     Financials (As Per Availability)

15.1.5.4.     Key Market Focus & Geographical Presence

15.1.5.5.     Recent Developments

15.1.5.6.     Key Management Personnel

15.1.6. Tata Capital Limited

15.1.6.1.     Company Details

15.1.6.2.     Product & Services

15.1.6.3.     Financials (As Per Availability)

15.1.6.4.     Key Market Focus & Geographical Presence

15.1.6.5.     Recent Developments

15.1.6.6.     Key Management Personnel

15.1.7. Hero FinCorp Limited

15.1.7.1.     Company Details

15.1.7.2.     Product & Services

15.1.7.3.     Financials (As Per Availability)

15.1.7.4.     Key Market Focus & Geographical Presence

15.1.7.5.     Recent Developments

15.1.7.6.     Key Management Personnel

15.1.8. Muthoot Capital Services Limited

15.1.8.1.     Company Details

15.1.8.2.     Product & Services

15.1.8.3.     Financials (As Per Availability)

15.1.8.4.     Key Market Focus & Geographical Presence

15.1.8.5.     Recent Developments

15.1.8.6.     Key Management Personnel

15.1.9. Mahindra & Mahindra Financial Services Limited

15.1.9.1.     Company Details

15.1.9.2.     Product & Services

15.1.9.3.     Financials (As Per Availability)

15.1.9.4.     Key Market Focus & Geographical Presence

15.1.9.5.     Recent Developments

15.1.9.6.     Key Management Personnel

15.1.10. IDFC FIRST Bank Ltd.

15.1.10.1.  Company Details

15.1.10.2.  Product & Services

15.1.10.3.  Financials (As Per Availability)

15.1.10.4.  Key Market Focus & Geographical Presence

15.1.10.5.  Recent Developments

15.1.10.6.  Key Management Personnel

16. Strategic Recommendations/Action Plan

16.1.             Key Focus Areas

16.2.             Target Type

16.3.             Target Provider Type

17. About Us & Disclaimer

 (Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

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The Two Wheeler Loan market has been driven by various factors such as convenience, social media, unique features, gift-giving, with manufacturers innovating and expanding their offerings to meet the changing demands of consumers.

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Two Wheeler loans can be expensive, making them less accessible to budget-conscious consumers.

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One major trend in the Two Wheeler Loan market is the integration of digital technology. With the rise of digitalization lenders have started offering online application through websites and mobile apps, submit their documents electronically and offer instant approvals in some cases.

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Some key players operating in the India Two Wheeler Loan market include HDFC Bank Ltd., ICICI Bank Limited, Kotak Mahindra Bank Limited, Axis Bank Limited, Bajaj Finance Limited, Tata Capital Limited, Hero FinCorp, Muthoot Capital Services Limited, Mahindra & Mahindra Financial Services Limited, and IDFC FIRST Bank Ltd.

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Srishti Verma

Business Consultant
Press Release

India Two Wheeler Loan Market To Be Dominated by New Two Wheeler Loan During the Forecast Period

Jun, 2023

Rising sales of two wheelers along with the easy availability of financing options and rising digitalization in two wheeler loan are the leading factors expected to drive the two wheeler loan market

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