cKers Finance, an NBFC focused on financing sustainability and clean energy projects has announced a debt financing tie-up with OTO Capital, an alternate finance startup for two wheelers, for its two-wheeler electric vehicles leasing program.
cKers has set-up an initial line of ₹30 million for OTO. This facility will be used by OTO to purchase e-two-wheelers in India, which will then be deployed to the customers of OTO on flexible leasing models. This partnership aims to provide consumers with affordable and flexible financing options to own electric two wheelers.
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 are coming out with interesting and easier methods of EV adoption, vehicle leasing being one such adoption model.
(Also read | Hero Electric partners OTO Capital for flexible electric two-wheeler financing)
The convergence of cKers and OTO Capital is a first-of-a-kind model to finance EV purchase. Through this initiative, both brands will offer customers a hassle-free experience of purchasing electric vehicles. The partnership allows customers to save up to 30% in their monthly installments by choosing the OTO Monthly Installment plans (OMI). The minimum tenure for the leasing program stands at 12 months, which can be increased up to 36 months.
Customers have the option to purchase the electric two wheelers by paying the balance cost at the end of the program or upgrade to a newer model. Speaking about the facility, Deepak Gupta, Business Development Head, cKers Finance said, "Electric two wheelers have still not penetrated the Indian two wheeler market and constitute less than 1% market share of two wheelers sold each year. The primary reason for that is EVs are still 1.5-2x costlier than other vehicles, though these costs are steadily declining."
(Also read | Ampere Vehicles partners OTO Capital for affordable financing solutions)
Talking about the transition of Indian two wheeler market, Sumit Chhazed, Co-founder, OTO Capital said, "We are excited to partner with cKers' to support the adoption of electric two-wheelers in India. Since the cost of EVs is steadily reducing in India 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 few 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.
While cKers has been financing clean energy and clean mobility in the past, this unique financing line aims for faster adoption of clean mobility for personal transport. The NBFC remains bullish about the growth in the EV ecosystem and is confident about the growth prospects that it will create for the Indian economy.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.