Hero Electric today announced its partnership with vehicle lease startup OTO Capital for affordable and flexible financing options for its electric two-wheelers. The startup states that the leasing plan will help consumers save up to 30% on their electric scooters by paying a more affordable monthly installment instead of EMIs for a loan. Hero Electric scooters will be available on lease across 16 Hero Electric dealerships in Bangalore and Pune. The plan will be expanded across the country in the next few months.
OTO Capital 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.
The leasing plan offers savings of up to 30% monthly. For example, the Hero Electric NYX LI costs Rs 2,478 per month through OTO, while a traditional bank EMI would cost upwards of Rs 3,520 per month for a two-year plan.
The partnership with OTO Capital is part of Hero Electric’s aggressive plans aimed at revamping customer experience. The manufacturer has reported a significant increase in sales of electric scooters in recent months. With the government’s recent plans to allow registration of EVs without batteries, the company foresees stronger consumer demand for electric two-wheelers.
The pandemic has led to people wanting to own a mode of personal mobility to avoid public transport as much as possible which has resulted in signs of recovery in some automobile segments. OTO Capital has seen a 120% increase in the demand for vehicle leasing in the last four months. It also reports a visible shift in vehicle-purchasing behaviour as consumers seek alternatives to auto loans such as vehicle financing and leasing.
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