Hyderabad: OTO Capital, an alternate finance startup for purchasing two-wheelers, has reported 386 per cent increase in consumers opting for vehicle leasing to finance their two wheeler purchases. Additionally, over 45 new automotive dealers in Hyderabad have signed up with OTO Capital to provide vehicle leasing as an alternative model of financing to their customers. With the success of its completely online model and increasing demand from dealers, OTO is going live in more than 45 partner showrooms to provide it’s flexible ownership plan to their walk-in customers. It aims to provide the OTO Flexible Ownership Plan to at least 3,000 customers in Hyderabad in 2021.
More than 400 two-wheelers have been leased since OTO was launched in Hyderabad 4 months ago and the city has contributed to 35 percent of overall online sales for OTO. Post the pandemic, OTO has seen an increase in the number of self-employed professionals opting for vehicle leasing constituting over 46 per cent of the overall portfolio.
There has been a surge in demand for scooters and early entrant bikes priced below Rs 1 lakh. OTO is currently available at more than 160 dealers across Bangalore, Pune, Hyderabad and Chennai. It has financed more than 2,000 two-wheelers worth over Rs 17 crore in 2020. It is adding more than 500 customers per month and plans to grow 10X this year.
OTO Capital co-founder Sumit Chhazed, “There has been a lot of interest from buyers in Hyderabad and leasing vehicles is becoming more popular with customers who want flexibility, affordability and not compromise on their choice of model and brand. We are bullish about Hyderabad and will soon be open to other cities in the region and sign more dealers in Hyderabad and surrounding towns.”
