Press Release

India Two Wheeler Loan Market To Be Dominated by New Two Wheeler Loan During the Forecast Period

Rising sales of two wheelers along with the easy availability of financing options and rising digitalization in two wheeler loan are the leading factors expected to drive the two wheeler loan market during the forecast period.

According to TechSci Research report, “India Two Wheeler Loan Market–By Region, Competition,  Forecast and Opportunities, 2019-2029F.”, The India two wheeler loan market size is expected to grow at a fast rate during the forecast period. As two-wheeler loan is a hassle-free way of financing a two wheeler of choice with the increasing disposable income of the population, which has led to a surge in the demand for personal vehicles. Two-wheelers are often the first choice for many people due to their affordability and convenience, and this has led to an increase in demand for two-wheeler loans. Moreover, banks and other financial institutions are offering attractive financing options for two-wheelers, making it easier for people to purchase their desired vehicle. This has also increased the demand for two-wheeler loans.

In addition, the government has initiated several schemes and policies to encourage the use of two-wheelers. For example, the Pradhan Mantri Mudra Yojana offers loans to small entrepreneurs who want to purchase two-wheelers for business purposes. These initiatives have boosted the demand for two-wheeler loans. Urbanization is increasing rapidly and with the growth of cities, the need for personal transportation is also increasing. Two-wheelers are a convenient mode of transportation in cities, where traffic congestion is often an issue. This has led to a surge in demand for two-wheeler loans. The availability of easy financing options and the affordable nature of two-wheelers have made it possible for people to own their vehicles and improve their mobility such as the availability of online loan applications and the ease of buying two-wheelers online has made it convenient for people to purchase their vehicles and apply for loans without visiting banks and dealerships physically.

The Indian government has implemented several policies aimed at promoting the use of two-wheelers, such as offering subsidies on electric two-wheelers. This is expected to drive demand for two-wheelers and two-wheeler loans. Moreover, many lenders have tied up with two-wheeler manufacturers to offer loans at lower interest rates or other incentives. This has made it easier for customers to buy their preferred two-wheeler model and avail of attractive loan offers such as Kinetic Green Energy, a manufacturer of electric vehicles, has partnered with Cholamandalam Investment and Finance Company to provide financing options to its EV customers. Both companies have signed an initial agreement to provide finance to customers looking for electric vehicles. According to the EV startup, by providing appealing financing options and catering to newer markets with Chola's pan-India expansion, the alliance anticipates making electric vehicles more affordable for consumers who are price conscious. Moreover, the partnership will enable dealers to give EV buyers quick and affordable financing options.

Moreover, due to net banking, it is now possible to apply for a loan online with less documentation, which eliminates the inconvenience of waiting for an approval and promotes the market development. Moreover, factors driving the expansion of the Indian two-wheeler loan industry include the presence of major automakers, flexibility in terms of tenure and payment method, and adjustable interest rates based on CIBIL score. The latest trends, including digitalization and new business models, have also made it easier for financial institutions to reach consumers in rural and semi-urban areas across India and fulfill consumers growing demand.


Browse over XX market data Figures spread through XX pages and an in-depth TOC on "India Two Wheeler Loan Market.”

The India Two Wheeler Loan market is segmented on the basis of type, provider type, percentage of amount sanctioned, tenure and region.

On the basis of type, the market is divided into new two wheeler & used two wheeler. The new two wheeler loan is dominating owing to the high price of new two wheelers in comparison to used two wheeler loan.

On the basis of provider type, the market is segmented into banks, NBFCs (non-banking financial companies), OEM (original equipment manufacturer), and others (fintech companies), among which NBFCs have dominated the India two wheeler loan market because of flexible formalities and the availability of larger loans.

Key market players in the India two wheeler loan market include:

          ·         HDFC Bank Ltd.

          ·         ICICI Bank Limited

          ·         Kotak Mahindra Bank Limited

          ·         Axis Bank Limited

          ·         Bajaj Finance Limited

          ·         Tata Capital Limited

          ·         Hero FinCorp

          ·         Muthoot Capital Services Limited

          ·         Mahindra & Mahindra Financial Services Limited

          ·         IDFC FIRST Bank Ltd


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“Throughout the projected period, the demand for two-wheelers loan is expected to increase due to the increasing demand for two-wheelers, availability of financing options, and government initiatives are the major driving factors of the two-wheeler vehicle loan market. Moreover, availability of online loan applications has made it convenient for people to purchase their vehicles and apply for loans without visiting banks and dealerships physically. Overall, the availability of easy financing options and the affordable nature of two-wheelers have made it possible for people to own their vehicles and improve their mobility,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.


India Two Wheeler Loan Market, By Type (New Two Wheeler & Used Two Wheeler), By Provider Type (Banks, NBFCs (Non-Banking Financial Companies), OEM (Original Equipment Manufacturer), Others (Fintech Companies)), By Percentage of Amount Sanctioned (Less than 50%, More than 50%), By Tenure (Less than 3 Years, 3 & More than 3 Years), By Region, Competition, Forecast & Opportunities, 2019-2029F”, has evaluated the future growth potential of two wheeler loan in the global market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the market of India two wheeler loan.

Mr. Ken Mathews
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