The used vehicle business has seen a surge in recent times. The used four-wheeler segment has seen a surge in demand in recent times, owing to long waiting periods and several other factors. The demand for used two-wheelers have also seen an increase, and according to CredR, the demand and supply graph saw a boost up to 85% after the first 45 days of pre-COVID-19 numbers. Speaking to Sasidhar Nandigam, the CEO and Co-Founder of CredR, we try to understand how the used two-wheeler market is emerging after the pandemic lockdowns, and how important it was for the company to shift to an online module.
How did the pandemic affect used bike sales?
The pandemic made a revelation among people, which instigated the fear of travelling in public transport. This convinced the commuters and two-wheeler seekers to look for an affordable, value for money two-wheeler. The private mobility market has been witnessing a surge since then. In the past year, the used mobility space witnessed an enormous hike of approximately 400% in online searches and used two-wheeler inquiries. This paved the way for accelerated growth of the used mobility sector that boosted the demand in the market.
How did CredR overcome the lockdown period, since used bikes need to be physically seen?
At CredR, we have always believed in utmost transparency. To establish this fact, our website shows the real images of ready-to-sell vehicles. Our team makes sure that every vehicle has been refurbished and inspected thoroughly on 150+ checkpoints, before being listed for sale. To enhance the accessibility and state-of-the-art service, we also introduced home test rides and buy-at-home features for the comfort of our customers, during the lockdown and initial unlock phases.
Since most business modules shifted online, how has CredR adapted to this?
Shifting to an online mode of operations was an essential step to providing flexible and on-the-go services to our customers. This was a natural mirroring of customer behaviour, which turned digital during the lockdown and made us realise the importance of digitisation. As early as the first month of launching the online booking system and the buy at-home option, we received tremendous inquiries. This channel ended up contributing to 33% of overall sales.
Apart from selling bikes, what other add-ons do you offer?
Each CredR used two-wheeler comes with a host of benefits/ add-ons
– Free 6 Month Warranty on engine and gearbox
– 7 Day buy protect to cover any issues with the two-wheeler within 7 days from purchase
– Assured 12 Month Buyback on all our used two-wheelers
– Paper Transfer Assistance
CredR is a full-stack vertically integrated consumer brand, where customers can transact in one of the following ways:
– Buy a used two-wheeler
– Sell their existing two-wheeler to CredR
– CredR works as exclusive exchange partners with a host of leading 2W OEMS (petrol and electric), so customers can sell their old two-wheeler and upgrade to a new two-wheeler of their choice at any OEM partner showroom
– Secure their two-wheeler with CredR’s annual maintenance contract plans
How has the trend been after the restrictions were lifted?
Following the easing of restrictions, the two-wheeler market witnessed a surge due to pent-up demand. We have seen enormous requests for budget bikes and scooters. Our demand and supply graph saw a boost up to 85% after the first 45 days of pre-COVID-19 numbers. This is an outcome of people’s change, preferring to travel independently, as they are still sceptical about using public transport. In fact, colleges and offices have completely opened up, and we see a predominant preference for private mobility among people.
With the festive season, has the demand gone up?
The festive season obviously is a favourable time for business but this time we have seen a lot of tailwinds in business due to the following factors as well:
– The rise in vaccination numbers and people returning to work fearlessly
– Reopening of colleges and workplaces which has seen a steep increase in intra-city commute
– Economic activity has increased in markets – people are spending more as opposed to last year. In fact, India has seen the highest economic activity in this festive season, in this last decade.
– Lucrative offers being run by OEM partners, which acts as a hook for people to upgrade
– Positive sentiment has returned in buyers this year
We have seen a 40% increase in cumulative revenues from all our transaction channels this festive season.
Is the used bike sentiment affected by India’s push towards EVs?
The EV market remains nascent as the charging infrastructure is still not great in urban markets. At least for the foreseeable future, we do not see the used bike market getting affected by the advent of EV. We welcome the change as it will only lead to a bigger market opportunity for us and a new category to add to our bouquet, structuring under the aegis of our team.
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