Triumph will start operations of used-bike business in next 12-18 months and initially they will start with top 3-4 metro cities with its current dealer network
Indian two wheeler bike segment is the fastest growing in the world. Even if its entry level 100 cc to 1000 cc superbikes, everything has a market in India. Earlier this year, government reduced the import excise duty of bikes and this dropped prices from 40,000 to 4,25,000 for some models. This reduction is prices have spiked sales of premium bikes in India.
Most of the global manufacturers are present in India and they all has good retail network across the country. Now these companies are planning to foray into used bike business also as currently only main-stream manufacturers are doing this. Currently in India, premium-used bike business is not handled by manufacturers and the potential of this market is huge.
In NCR region, there are 10-15 multi-branded used bike shop which shows that there is a huge market to be explored. Royal Enfield recently announced that the company is planning to enter used bike business in India. They will start with 10 shops across the country by the end of this year and soon they will expand to small towns and cities also.
Harley Davidson also announced its plans to enter used bike business in India last week. The American manufacturer is already running the pilot program in selected dealerships and the result is positive which gave the company confidence to roll out the project across India. Initially, Harley Davidson will use its current dealerships to sell these bikes and later they will start different shops.
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Triumph which is one of the fastest growing superbike maker is also planning to enter used bike business as 15 percent volumes comes from exchange of second hand bikes in Metro and 5-6 percent in non-metro. The company will start operations of used-bike business in next 12-18 months and initially they will start with top 3-4 metro cities with its current dealer network. Then later depending on volume they will open dedicated used-bike dealerships.
Ducati is also evaluating the validity of used bike business in India. The company will only enter used bike business once they are certain of being able to provide same luxury experiences to the customer which goes beyond selling. One of the big USP with OEM used bikes is that they can provide finance, warranty, exchange and thorough check up of the bike which will encourage more customers to enter this elite segment.