OTO Capital, which claims to be India’s first vehicle leasing startup, has announced its entry into Hyderabad to help consumers lease two-wheelers from all the major brands. This is the first time the company will be providing their services through a completely online model. OTO has partnered with 45 dealerships in Hyderabad already and plans to sign up 50 more showrooms in the next two months.
OTO Capital says it has observed high demand from potential buyers in Hyderabad with more than 200 queries being made every month to lease two-wheelers. In the pilot stage itself, several bikes have already been leased out to city buyers. The company has tied up with prominent dealerships such as Fortune Honda, Gem Suzuki, Varun Bajaj, Phoenix Hero, Pearl Yamaha, Shanthi Motors and many more. While OTO Capital has always had an online focus, this is the first time the full range of offerings will be available online. Due to the COVID restrictions, buyers are no longer visiting showrooms frequently. To fulfill their requirements online, OTO has trained the dealership staff on the lease approval process and online KYC, signing of documents and home delivery services. This will ensure that a buyer doesn’t need to step out of their house to own a vehicle. The home delivery and home test-drive options are also available in the city now.
OTO Capital says it has seen huge traction in Bengaluru and Pune and claims to have leased more than 1000 two-wheelers since January 2020. “The main benefit with OTO is that one can save upto 30% through OTO Monthly Installments (OMI) compared to a traditional bank loan EMI. The buyer has complete control over the ownership and can choose to lease the vehicle between 12 months to three years. At the end of the leasing period, one can also buy back the vehicle from OTO or upgrade to any other vehicle of their choosing,” the company said in a statement. To reduce the financial burden, OTO has also started their festive offerings in September. Their latest IPL Season offer is now live on the platform so that approved buyers can save upto Rs 6000 on their OMIs.
The automotive industry is fast moving towards online channels to sell their vehicles to comply with the COVID rules. Vehicle purchasing has long been dependent on physical interactions and on-ground sales, but this year, major OEMs have started leveraging online platforms like OTO Capital to promote their vehicles and get the attention of buyers. This is a difficult transition for both buyers and sellers and OTO aims to provide a seamless process to carry out the transactions. Hyderabad has been a tech-forward city with a high number of early adopters. The city’s two-wheeler segment has recovered from the economic slowdown faster than Bengaluru and Pune this year, which makes it a key market for OTO Capital.