Global Market Research Company US India Two Wheeler Loan Market, Forecast and Opport | Page 14
INDUSTRY BRIEF
According to TechSci Research report, “India Two Wheeler Loan Market By Type, By Source, By Percentage of Amount Sanctioned, By Type of
City, By Tenure, Competition, Forecast & Opportunities, 2025”, in 2018, India registered sales of over 26 million two wheelers, making it the
world’s largest two wheeler market. As a result, major automakers are setting up their production plants and are focusing on launching new
vehicles in the developing economy, which would drive the country’s two wheeler loan market in the coming years. Declining unemployment
rates, increasing disposable income and high per capita income level are positively impacting the two wheeler loan market in India.
India two wheeler loan market can be segmented based on the type, source, percentage of amount sanctioned, type of city, tenure and region. In
terms of type of city, market can be segmented into tier 1, tier 2, tier 3 and tier 4. Of all, Tier 2 cities are the major adopters of two wheelers in the
country due to congested roads and parking issue in these cities. Two wheelers provide ease of parking and are also fuel efficient, which is
pushing their demand across tier 2 cities, thereby boosting two wheeler loans market in such regions.
Major companies offering loans for the purchase of two wheeler in India are Banks and Non Banking Financial Companies (NBFC). NBFCs are
coming up with various credit provisions with minimum documentation in order to attract more buyers and borrowers. Leading banks operating in
the market include HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Prime Ltd., Axis Bank, among others.
“Two wheeler loan market in India is anticipated to grow at an impressive rate during the forecast period owing to low loan interest rates and cost
effectiveness of two wheelers. Moreover, factor like growing disposable income, declining fuel prices and increasing ownership of two wheelers
are further bolstering the growth of the two wheeler market in India, which in turn is driving the two wheeler loan market in the country.” said Mr.
Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
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