Hero Electric has partnered OTO Capital, a vehicle leasing startup to provide consumers with affordable and flexible financing options to own their electric two-wheelers. The partnership will allow consumers to save up to 30 percent on their e-scooter by paying monthly OMIs (OTO monthly instalments) compared to other financing options in the market. The scheme will be rolled out across 16 Hero Electric dealers in Bangalore and Pune, with a focus to expand across India in the next few months.
The partners say that India being in a nascent stage when it comes to EV adoption, financing options are limited and not available at all dealerships and that hinders mass adoption. OTO Capital says that however, lately some companies are coming out with interesting and easier methods of EV adoption with its unique subscription model being one.
OTO says its flexible model of ownership allows customers to lease an electric two-wheeler for a minimum of 12 months, after which they can choose to upgrade to any other make and model. The leasing period can range from 12 months to 36 months, and the leasing is claimed to help save of up to 30 percent monthly. For instance, the Hero Electric NYX LI costs Rs 2,478 a month through OTO, while a traditional bank EMI would cost upwards of Rs 3,520 a month for a 2-year plan.
Commenting on the partnership, Sohinder Gill, CEO, Hero Electric said: “We are delighted to partner with OTO Capital as their flexible leasing model will allow consumers to make a comfortable switch from ICE-vehicles to electric vehicles while making the whole ownership experience easier for buyers. The entire two-wheeler segment will benefit from adopting new financing options and we hope that by easing the buying process, allowing online bookings and home deliveries, the percentage of EV buyers will improve significantly.”
Sumit Chhazed, co-founder, OTO Capital said: “We are excited to be Hero Electric’s partner to support the adoption of electric two-wheelers in India. We hope to lease at least finance 1,000 bikes in the coming months. We have seen a surge in consumer demand for affordable alternative financing options for two-wheelers across all segments with customers looking for personalised services. Since the cost of EVs in India is set to reduce significantly in coming months, we aim to provide our customers the best pricing with flexibility to ease their buying experience.”
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