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Hero Electric Partners with OTO Capital

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Hero Electric, a pioneer in the electric vehicle industry in India,  announced their partnership with OTO Capital, India’s first 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% 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 businesses 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. The affordability provided through leasing guarantees savings of up to 30% monthly. For example, the Hero Electric NYX LI costs INR 2,478/month through OTO, while a traditional bank EMI would cost upwards of INR 3,520/month for a 2-year plan.

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Hero Electric has witnessed a significant increase in sales of e-scooters in the 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.

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.”

The convergence of Hero Electric and OTO Capital marks the beginning of a new chapter in the realm of electric vehicle buying in India. Through this initiative, both brands will 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.

Commenting on the partnership 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 coming months, we aim to provide our customers the best pricing with flexibility to ease their buying experience.”

The automobile industry is also seeing green shoots of recovery amidst the pandemic. Consumers are showing preference to owning a vehicle than using public transport and shared mobility. OTO Capital has seen a 120% increase in the demand for vehicle leasing in the last 4 months. There is a visible shift in vehicle-purchasing behaviour as consumers are seeking more ‘conservative’ alternatives such as vehicle financing and leasing as alternatives to auto loans.

OTO has also enabled home deliveries of vehicles and ensures all the paperwork is done online with as less contact as possible. OTO is supporting demand from its partner dealers and automakers who are changing business strategies and investing in new digital tools as consumers demand more online and personalized services. OTO is now available as an alternate financing option in more than 200 dealer showrooms and the company is looking to partner with several other EV makers in coming months.

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