Hero Electric, the largest electric two-wheeler OEM in India, has signed a partnership with AU Small Finance Bank, which has 953 touch-points across India, to provide easy finance solutions to customers.
Hero Electric, which has its manufacturing plant in Ludhiana, currently has a 14-strong portfolio of e-scooters.
The demand for electric two-wheelers is on the rise and financing solutions act as a segment enabler for faster adoption. Cumulative retail sales for the four-month April-July 2022 period crossed the 175,000-unit mark at 175,391 units. In July 2022, Hero Electric was the No. 1 EV OEM with 8,953 units.
Hero Electric aims to enhance the financing process for its customers by providing seamless and easy loan solutions along with online assistance. Customers can benefit from its unique financing option with customised EMIs.
Speaking on the partnership, Sohinder Gill, CEO, Hero Electric, said, “The electric two-wheeler segment is estimated to see 100% penetration in the Indian market by 2027, making financing solutions an imperative need. Our partnership with AU Small Finance Bank is a step towards smoothening the financing procedure for our customers and enhancing their purchase experience. With easy instalments and customized offers, customers will be able to make a hassle-free EV switch. We are committed towards the mission 'Zero Emission' and are working to achieve carbon-free mobility through partnerships/collaborations.”
Bhaskar Karkera, Chief of Wheels, AU Small Finance Bank, said, “Vehicle loan has been one of our flagship products and we offer one of the widest product ranges in the industry extending credit for two-wheeler to 22-wheel vehicles. In the last few years, as the emphasis on adoption of electric vehicles grew, we consciously decided to focus on this segment. Also, as an organization focused towards growing sustainably, this will help us contribute towards reaching the NDCs (Nationally Determined Contribution). This association with the reputed Hero Electric is a significant step in furthering this objective.”
EVs take 3.6% of two-wheeler sales in India in H1 2022