Smart and Practical: Rising Affinity for Refurbished, Pre-Owned 2-Wheelers
Published on : Friday 20-10-2023
The pre-owned two-wheeler market in India is thriving, driven by a compelling array of factors, says Narain Karthikeyan, Founder & CEO of DriveX.
Two-wheelers are extremely popular in India, and the reasons behind this popularity are many. Firstly, they are the most convenient choice for individuals to navigate easily through the traffic and reach their destinations effortlessly. Secondly, they perfectly fit the road and weather conditions and are a reliable option to cover any journey whether it be long or short. Also, India is now a home to a young population which demands a blend of both style and speed. The two-wheelers not only deliver this but further support them in making a strong statement about their choices and personalities. While two-wheelers have always been high in demand, a noticeable trend among customers highlights a growing inclination towards refurbished, pre-owned vehicles. The customers today are increasingly moving towards them for factors including cost-efficiency, reliability, preference for sustainable choices, and others, making them a smart and practical choice for many.
Economic lucrativeness leading to customer affinity
The perks of going for refurbished, pre-owned two-wheelers are more than affordability. The customers nowadays are more conscious of the economic lucrativeness of these vehicles, making them a pragmatic solution for their mobility needs. They budget-conscious customers realise that a pre-owned vehicle actually amplifies financial advantage with a lower rate of depreciation. Since these vehicles have already gone through initial depreciation, they offer more stability in value for a longer period, and become a financially savvy investment unlike new counterparts.
Other aspects that enhance their economic lucrativeness are lower insurance cost and warranty up to a certain period, providing an additional financial edge for buyers. Also, buying pre-owned two-wheelers after the coming of organised players in the market has become more accessible, affordable and convenient, thanks to easy financing options. Now, customers can go for a vehicle of their own choice, without worrying about budgetary constraints and pay through flexible payment options.
Enhanced refurbishment process with certification to meet quality standards
The notion that pre-owned vehicles are not carefully refurbished is no longer true. The fact is that with rising affinity towards pre-owned vehicles among customers and coming of organised, trusted players, the refurbishment process is undergoing a landmark shift. Nowadays, companies dealing in pre-owned vehicles carefully select vehicles and adopt a rigorous process to ensure they meet strict criteria. For instance, once selected, the vehicles go through advanced, state-of-the-art technical centres for refurbishment where they pass innumerable quality checks to meet certification standards. To deliver quality and durability, skilled technicians work to uplift both performance and aesthetics so the product matches new vehicles in every aspect such as power, pick-up, mileage and safety.
Transparency, convenience and enhanced customer experience
Earlier, customers looking for pre-owned two-wheelers struggled with challenges such as defects, untrustw orthy sellers and various sales tactics which discouraged them from making a purchase. But today, they can eas ily find trusted dealers, e-commerce players which are addressing these issues. The organised, trusted players, understanding the market opportunities and growing inclination towards pre-owned two-wheelers are following an innovative and comprehensive approach, covering the entire value chain to cater to their diverse needs. For instance, leveraging the 3S model which includes focus on sales, services, and spares, it has become possible to ensure that customers find everything they need conveniently under one roof. Also, with a circular business model, they are capturing opportunities at every stage, starting from buying through captive supply, company supply, and exchange, to the meticulous refurbishment process, and finally, selling with added benefits.
In addition, by integrating digital solutions, businesses are ensuring the customers get complete access to the vehicle’s history, conditions, photographs and even book a test ride while sitting at the convenience of their home. By getting the product features along with pricing and other factors, they can make informed and correct decisions. The establishment of trust, convenience and transparency has made it easier for customers to buy a pre-owned vehicle without any doubt or worry.
Unique appeal with quality and durability
It is a wrong belief that pre-owned two-wheelers don’t offer great quality and durability. Nowadays, there are many owners who maintain their vehicles really well to improve their longevity and reliability. Also, the pre-owned two-wheelers come with a proven track record of withstanding various road and weather conditions. Additionally, there are many customers who like to collect vehicles which are no longer in production or are rare to find in the market. Moreover, the state-of-the-art refurbishment facilities enable restoring two-wheelers to their optimal condition, with multi-brand refurbishment and skilled OEM standard equipment and technicians ensuring the highest quality standards. They not only add to the value of the garage but serve as a major attraction for vintage buyers by providing a unique appeal.
Sustainability is a priority
The Indian customers are now more environmentally-conscious and want to make sustainable choices when it comes to owning a vehicle. Going for a pre-owned two-wheeler extends the lifecycle of the vehicle and reduces the demand for new ones, making them a sustainable and eco-friendly choice. Buying a pre-owned vehicle makes sure that it is used for a longer period, is not wasted and doesn’t contribute to waste generation. On the other hand, decline in demand for new two-wheelers supports reduction of carbon footprint as vehicle manufacturing is a highly energy-intensive process and requires a significant amount of resources.
The pre-owned two-wheeler market in India is thriving, driven by all these compelling array of factors. The multiple benefits coupled with cost advantages, enhanced aesthetics and features, and sustainability-related benefits offered by organised, trusted players further solidify them as an excellent choice for customers.
Narain Karthikeyan is Founder & CEO of DriveX. A prominent international figure in the world’s motorsports circuit, Narain Karthikeyan holds the prestige of being the first Indian to compete in the Formula One Championship. Drawing inspiration from his father – a racer who has seven South India Rally titles to his name, Karthikeyan raced for several teams across the world in his formative years. In 2010, Karthikeyan was awarded the Padma Shri Award – India's fourth highest civilian award for his astounding performances in motorsports.
After ending his single-seater career in 2019, Karthikeyan continued to work extensively with automotive OEMs in manufacturing and development.
For Narain Karthikeyan, shifting gears from racing to entrepreneurship was a natural progression; Karthikeyan hails from a family of entrepreneurs – a 100-year-old reputed business house with various philanthropic and commercial interests in energy, education, healthcare, and textiles. In addition to co-founding Leap Green Energy, Karthikeyan joined forces with his childhood friend, Christopher Sargunam, to found DriveX – a digital-first company that helps sell, trade and distribute pre-loved motorcycles and scooters. Within two years of the company’s formation, in 2022, DriveX was valued at Rs 178 crore, backed by the TVS Group – one of the biggest motorcycle manufacturers in the world.
As Founder & CEO at DriveX, Narain Karthikeyan oversees critical areas including operations, production, sales and marketing, and tech.