Hero Electric partners OTO Capital to finance customers for electric two-wheelers

PTI, Aug 19, 2020, 2:35 PM IST

New Delhi: Hero Electric on Wednesday said it has partnered with vehicle leasing start-up OTO Capital to offer affordable and flexible financing options for electric two-wheelers.

Under the partnership, OTO Capital will offer a flexible model to customers to lease an electric two-wheeler for a minimum of 12 months, after which they can choose to upgrade to any other model, the company said in a statement.

Commenting on the partnership, Hero Electric CEO Sohinder Gill said the flexible leasing model through OTO Capital will allow consumers to make a comfortable switch from internal combustion engine (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 electric vehicle (EV) buyers will improve significantly,” he added.

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, the statement said.

OTO Capital Co-founder Sumit Chhazed said, “we hope to lease at least 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.”

The partnership will offer up to 30 per cent savings per month, the company said.

“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,” it said, adding the leasing period can range from 12 months to 36 months.