OTO Capital is a Mumbai-based finance start-up that offers loans to two-wheeler buyers on flexible terms which involves leasing a two- wheeler and also buying it at the end of the lease tenure by paying the residual amount.
The program with Royal Enfield includes flexible tenure options spanning from 1-3 years, up to 45% lower EMIs, and a guaranteed buyback value of up to 77% depending on the tenure coupled with a cash back incentive at the end of the tenure, this initiative is a first-of-its-kind in the industry.
The maker of Hunter 350 and Continental GT among other motorcycle brands has launched the assured back program at a time when the competition in the middleweight motorcycle segment where it leads, has been heating up with the entrance of Bajaj-Triumph and Hero-Harley models.
The motorcycle-making arm of Eicher Motors has committed its highest ever annual capex of Rs1600-Rs1700 crore for FY24. Of this, Rs 1,000 crore will go into the new products for Royal Enfield and create capacities to ensure the company does not lose out on any demand on account of lack of supplies.
At the end of the assured buyback tenure, customers will have multiple options to choose from. They can opt for either trading their motorcycle for a new Royal Enfield motorcycle, retain, or return their motorcycle. The biggest advantage for the customer is lower monthly EMIs along with a guaranteed buy back value of their Royal Enfield motorcycle.
The move establishes a new industry standard, “reshaping the traditional motorcycle buying process, and thereby with a potential to further grow and develop the mid-size motorcycle segment in India,” the company said.
“At Royal Enfield we always prioritize the customer. Right from the stage of motorcycle conception and development, all the way to designing in-store and in-use consumer experience, we always endeavor to create what consumers want,” said B Govindarajan, chief executive at Royal Enfield said. This initiative shows the company’s “commitment to making motorcycle ownership more seamless, more accessible and more fun for potential riders,” he added.
To begin with, this program will be available across dealerships in 12 cities: Delhi, Ghaziabad, Noida, Lucknow, Jaipur, Bhopal, Indore, Ahmedabad, Pune, Hyderabad, Bengaluru, and Chennai; and will expand to more cities in the near future.
Keyword: Royal Enfield launches first of its kind buyback program with OTO Capital