In the dynamic setting of India's two-wheeler market, a notable surge towards refurbished and pre-owned vehicles is reshaping consumer preferences and the mobility landscape, signifying evolving attitudes towards sustainability and practicality. Reflecting this shift, Narain Karthikeyan, a prominent name in global motorsports as the first Indian to compete in the Formula One Championship, offers his unique insights in this exclusive article.
With a comprehensive grasp of vehicle design and industry dynamics, Karthikeyan smoothly transitioned into entrepreneurship, leveraging his family's business expertise and a century-old legacy in various commercial ventures. Notably, Karthikeyan's entrepreneurial journey extends to co-founding Leap Green Energy and establishing DriveX, a digital-first enterprise specializing in the trade and distribution of pre-loved motorcycles and scooters. As the Founder & Executive Director of DriveX, he oversees crucial areas including operations, production, sales and marketing, and technology, positioning the company as a key player in the two-wheeler market.
In the following insightful article, Karthikeyan delves into the multifaceted appeal of refurbished and pre-owned vehicles, shedding light on their economic benefits, refined refurbishment processes, and sustainable impact in the Indian market. He emphasizes the compelling case for these vehicles among contemporary consumers, showcasing their growing significance in the automotive industry and their pivotal role in fostering sustainable and cost-effective mobility solutions.
For a deeper understanding of India's evolving sustainable two-wheeler market and its transformative impact, explore the article below.
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 realize 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 organized 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 organized, 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, untrustworthy sellers and various sales tactics which discouraged them from making a purchase. But today, they can easily find trusted dealers, e-commerce players which are addressing these issues. The organized, 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 organized, trusted players further solidify them as an excellent choice for customers.
