Latest data from OLX, the online marketplace, revealed that it is leading in the pre-owned two-wheeler segment, with one-fourth of all the pre-owned two-wheelers in the country being listed on OLX. It owns approximately 75 percent market share of the online market for pre-owned two-wheelers in India.
Frost & Sullivan, the global consulting firm, and OLX conducted a market survey in 2016 that corroborated the leadership of OLX in the pre-owned two-wheelers category.
The survey, which interviewed 3600 respondents face-to-face, concluded that OLX has the highest awareness in the pre-owned two-wheelers category, three times higher than that of the closest competitor.
The high awareness translated into higher sale conversions as well with OLX users reporting the highest awareness-to-visit conversion in the category, and 75 percent of OLX sellers said that they found a buyer on OLX.
In addition to this, of all those who considered buying used two-wheelers online, three out of five buyers said that they completed their final purchase on OLX, a figure that was almost four times that of OLX's nearest competitor according to the survey.
"Used car and bike ownership fulfils both functional needs (such as long distance travel, easy maneuverability, taking the entire family together, etc.) and emotional needs (such as status, lifestyle upgrade etc.) Through our survey it has been confirmed that awareness about OLX among used 2-Wheeler sellers and buyers in India is three times higher compared to its nearest competitor," said Nandini Kelkar, Research Director, Customer Research Practice, Frost & Sullivan - South Asia, Middle East and North Africa.
In terms of the quantum of listings, OLX has the largest share of the pre-owned two-wheelers market by any single player. In 2016, OLX registered more than 3.2 million listings of two-wheelers, of which motorcycles form a major share out of which 1.56 million were sold. In other words, every minute six two-wheelers are listed on OLX, and three are sold.
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According to data from the Society of Indian Automobile Manufacturers (SIAM), almost 16.5 million new two-wheelers were sold in 2015-16 registering a year-on-year growth of three percent from the previous year. As per some industry estimates, the used two-wheeler market is estimated to be 12 million units, which implies that OLX sells 13 percent of all the used two-wheelers sold in India yearly, and more than one-fourth of the total pre-owned two-wheelers in India are listed on OLX.
At 12 million units, the pre-owned two-wheeler market is four times the size of the pre-owned cars market, which is estimated at 3.3 Million units. The pre-owned two-wheeler market is not as mature as the pre-owned car market, but in terms of volume it is much bigger.
"India is predominantly a two-wheeler market but there was no organized platform for buying and selling of two-wheelers before OLX entered the space. OLX pioneered the pre-owned two-wheeler marketplace in India becoming the default destination for selling and buying of motorcycles and scooters in the country," said Amarjit Singh Batra, CEO, OLX India.
On the buy side, OLX offers a steady stream of registered buyers who increase the chances of successful transactions. OLX receives 3.5 million buyer enquires on used two-wheelers every month, which implies that each two-wheeler listing on OLX gets double-digit responses.
In terms of traffic, the auto category including cars and two-wheelers is the largest category on OLX, generating 1.3 billion page-views that amounts to 45 percent of the traffic per month. Two-wheelers form the second biggest category in terms of traffic on OLX and alone generate nearly 230 million page-views every month.
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