Hero Electric, a pioneer in the electric vehicle industry in India, has announced its partnership with OTO Capital, India’s first vehicle leasing startup to provide consumers with affordable and flexible financing options to own their electric scooters and bikes.
The partnership will allow consumers to save up to 30 percent on their e-scooter by paying monthly OMIs (OTO Monthly Installments) compared to other financing options in the market. The partnership will be live across 16 Hero Electric dealers in Bangalore and Pune, with a focus to expand across India in the next few months.
With India being in its nascent stage of EV adoption, financing options are limited and not available at all dealerships and that hinders mass adoption. However, lately, some of the forward-looking business houses are coming out with interesting and easier methods of EV adoption, OTO being one such adoption model.
OTO’s 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.
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 1000 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 the coming months, we aim to provide our customers with the best pricing with the flexibility to ease their buying experience.”
“The affordability provided through leasing guarantees savings of up to 30 percent monthly. For example, the Hero Electric NYX LI costs Rs 2,478/month through OTO, while a traditional bank EMI would cost upwards of Rs 3,520/month for a 2-year plan,” the firm issued in a statement.
hrough this initiative, both brands will look to offer a hassle-free experience of purchasing electric vehicles. Hero Electric has aggressive plans aimed at revamping customer experience and this step is an effort in that direction. The firm has witnessed a significant increase in sales of e-scooters in recent months and with the government’s recent plans to allow registration of EVs without batteries, consumer demand for electric two-wheelers is expected to become stronger.
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.”