chennai honda motorcycle scooter india hmsi is planning an aggressive foray into the used twowheeler business so far almost entirely driven by the unorganized sector hmsi is planning to double its bestdeal network which sells used honda twowheelers and has tied up with shriram automall to offer financing to preowned bikes and scooters given the speed with which preowned car market has grown to whats now a segment larger than the new car market preowned twowheelers is being viewed as a longterm growth business for the company said top company officials hmsi is a comparatively new company in the twowheeler market and our pool of vehicles is now at a stage when the preused business can take off said yadvinder s guleria vpsales marketing hmsi ownership period for a two wheeler has come down from 78 years per vehicle a decade ago to 5 years right now in a couple of years the preused business will grow and we see this as a long term growth opportunity he added the company is kicking off an aggressive expansion strategy to tap this growing segment we have a separate vertical within hmsi to handle the best deal operation which is our preused business said guleria so far hmsi has 60 dealers in its network who have opened separate best deal outlets these outlets exchange vehicles refurbish them according to hondas quality standards offer warranty support for 6 months and 2 free services to preused vehicles we are building our preused business slowly our target is to have more than 100 best deal outlets in the next 12 months he added currently hmsi sells 20000 units per annum through best deal outlets the tieup with shriram automall will enable hmsi to clock 350000 units in three years said guleria hmsis interest in used two wheelers is understandable the preowned car business has picked up speed thanks to entry of organized players like mahindra first choice wheels carnation cartradecom and captive arms of mass market players like maruti true value hyundai hpromise and toyota u trust according to global market research firm jd power the percentage of firsttime car buyers considering a used vehicle in india has jumped to 17 in 2014 from just 4 in 2011 the used car market is now just a tad bigger than the new car market in two wheelers the used space is currently completely driven by unorganized players including the unorganized sector the second hand two wheeler sales is around 50 of new twowheeler sales said guleria which means while india sells around 13 lakh new two wheelers a month the average monthly preused two wheeler volume is around 65 lakh hmsis share of this market is around 23 less than the industry average said guleria exchange sales comprise around 15 of total two wheeler sales right now part of the reason for that is unlike cars vat on used two wheeler registration is the same as that on new ones in most states across