In order to compensate for the total cost increase brought on by the FAME II subsidy change, the maker of S1 Pro, Ola Electric has teamed up with IDFC First Bank and L&T Financial Services to offer two-wheeler loans at 6.99% with an extended term of 5 years.
The company plans to reduce the cost of loans further in competition with ICE vehicles and "a five-year tenure with a lower coupon will help to fasten the transition to ICE", company officials said.
In an earlier interaction with Auto Professional, Ola Electric's Chief Business Officer Ankush Aggarwal mentioned that the company wants to increase its presence outside of Tier 1 cities and reach consumers coming from Tier II and Tier III cities.
"With new financing options, we plan to reduce the cost of these financing options, which will help reduce the overall cost of EVs compared to ICE vehicles," Aggarwal said. He also added that the new finance options will be available in both online and offline formats before the customer finalises their purchase through the Ola app. The company which currently has opened close to 700 retail outlets is looking to introduce its 1000th store by this August, Aggarwal told Autocar Professional.