India Rental Two Wheeler Market: Ken Research

1. India's Rental Two-Wheeler Industry Set to Double in Size: Ken Research The Indian two-wheeler rental market, valued at USD ~38 Mn in 2021, is set to grow rapidly due to factors like tourism, urbanization, digitalization, migration, micro-mobility, traffic congestion, and cost-effective alternatives to owning and maintaining two-wheelers. STORY OUTLINE The Indian rental two-wheeler market is experiencing significant growth due to increasing tourism, urbanization, digitalization, migration, micro-mobility trends, traffic congestion, and cost-efficient alternatives to owning two-wheelers. Electrification is driving demand in the rental industry, with e-vehicles being actively incorporated. Adoption rates for electric two-wheelers have risen in leading states like Goa, Kerala, Karnataka, and Maharashtra surpassing the national average. The market is highly fragmented, with approximately 15,000 unorganized companies in 2020. Intense competition among organized players has led to a pricing war, resulting in negative margins and high burn rates. Key players such as Bounce, Yulu, Vogo, and Drivezy are strategically focusing on scooters to reduce capital expenditure and increase profitability in the rental two-wheeler market. Ken Research reports that ~70% of rental two-wheeler bookings are made by males, who exhibit a neutral preference between renting commuter bikes (with higher mileage and lower prices) and scooters. The Indian rental two-wheeler market is experiencing significant growth due to factors such as increasing tourism, urbanization, digitalization, migration, micro-mobility trends, traffic congestion, and cost-efficient alternatives to owning and maintaining two-wheelers. rapid urbanization in India has resulted in increased transportation needs. Renting two-wheelers offers a cost-effective and efficient solution for short-distance commuting within cities. Currently, there are approximately 30 organized players in the Indian rental two-wheeler industry. These companies are strategically targeting specific geographical areas and diversifying their services and vehicle offerings to cater to the rental market. 1. Electrification Drive: E-Vehicle Entry Accelerates Demand in the Rental Industry

2. Electric Vehicles Catching up the Demand E-Vehicle Entry Sparks Electrification Drive. India's electric two-wheeler market is growing steadily, with adoption rates rising to 5.63% in May 2023 from 4.05% in 2022. Leading states like Goa, Kerala, Karnataka, and Maharashtra have surpassed the national average. With a goal of 80% EV penetration by 2030, the rental industry is actively incorporating e-vehicles, accelerating demand and driving the electrification wave. Up to 392,681 of the 6.98 million two-wheelers sold in India this year till May 31 were electric. 2. Freedom on Two Wheels: Increasing Demand for Motorcycle Rentals in Tourist Spots

3. To learn more about this report Download a Free Sample Report Due to the advantages of personalized and affordable transportation, domestic tourists in India are increasingly opting for two-wheelers. In the fiscal year 2020, there were ~10.2 million foreign tourist arrivals in India, along with a staggering ~2 billion domestic tourist visits to various states. Youngsters in particular are showing a growing interest in road trips and adventure tourism, exploring destinations such as Leh & Ladakh, Manali, Udaipur, Bhutan, and Goa. It is worth noting that India has a youthful population, with over 50% below the age of 25 and more than 65% below the age of 35. This demographic, coupled with a burgeoning entrepreneurial culture, has significantly contributed to the rise of shared mobility solutions. 3. Race to the Top: Competitive Landscape Heats Up in the Two-Wheeler Rental Sector

4. Visit this Link: – Request for custom report The market is characterized by fragmentation, with a relaxed regulatory environment and a limited presence of organized companies. In the fiscal year 2020, there were approximately 15,000 unorganized companies operating in the market, collectively capturing around 25% of the market share in terms of Gross Transaction Value. The competition among organized players is intense, leading to a pricing war for various models, ultimately resulting in negative margins and a high burn rate. Key companies like Bounce, Yulu, Vogo, and Drivezy are strategically focusing on scooters as a means to reduce overall capital expenditure and increase profitability. The Indian rental two-wheeler market is experiencing substantial growth due to factors like increasing tourism, urbanization, and the need for cost-effective transportation. With approximately 30 organized players, the market is diversifying to cater to specific regions and incorporating electric vehicles. Motorcycle rentals are popular among domestic tourists, but intense competition and fragmentation persist. Opportunities exist for innovative strategies in this evolving landscape.