Technological advancements in the form of shift from combustion engine vehicle to electric vehicles, new product launches, subsidies offered by the government on purchase of electric vehicles and high vehicle replacement rate are boosting the sales of two wheelers across the country, thereby driving the two wheeler loan market.

Two wheeler loan market in India is projected to grow from an estimated $ 7.2 billion in 2020 to $ 12.3 billion by 2025 exhibiting a CAGR of more than 11% over the next five years. Growth in the market is anticipated on account of growing disposable income, declining fuel prices and increasing ownership of two wheelers.

Two wheelers offer a preferred transport option for short distance commute in India.Moreover, two wheelers are convenient in traffic congestions and provide ease of parking compared with other vehicles, thereby aiding the adoption of two wheelers, which in turn, is driving two wheeler loan market as well.

Moreover, now there is option to apply online for loan and fewer documents are required, owing to net banking, eliminating hassles related to long approval, which is positively influencing the growth of the market. Additionally, presence of major automakers in the country, flexibility in terms of tenure and payment mode, negotiable interest rates based on CIBIL score is further steering growth in India two wheeler loan market.

India two wheeler loan market can be segmented based on type, source, percentage of amount sanctioned, type of city, tenure and region.In terms of type, India two wheeler loan market can be bifurcated into new two wheeler and used two wheeler loans.

New two wheeler is the major segment in the market; however, old two wheeler segment is anticipated to witness growth in the coming years on account of lower price of such vehicles.

Major players operating in India two wheeler loan market are categorized into Non Banking Finance Companies (NBFC) and banks.For instance, some of the major banks in the country include HDFC bank, State Bank of India, ICICI bank and Axis Bank, among others.

Leading NBFCs operating in the country include Hero Fincorp, Bajaj Finserv, Mahindra & Mahindra Financial Services Limited and Shriram Transport Finance Co. Ltd.

–India Two Wheeler Loan Market, By Type , By Source , By Percentage of Amount Sanctioned , By Type of City , By Tenure , Competition, Forecast & Opportunities, 2025 Report
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