In a pioneering move for an Indian motorcycle manufacturer, Royal Enfield has joined forces with OTO Capital to unveil a guaranteed buyback program for its motorcycles.
The primary aim of this initiative, as stated by Royal Enfield, is to provide customers with a hassle-free and straightforward ownership experience.
OTO Capital, a Mumbai-based financing startup, offers flexible loans for individuals buying two-wheelers. These loans involve a lease arrangement, allowing the purchase of the vehicle by settling the remaining balance at the conclusion of the lease period.
This programme, which is the first of its type in the market, comes with a cash-back incentive at the end of the term, flexible tenure choices ranging from 1-3 years, and up to 45 per cent cheaper EMIs. In addition, there is a guaranteed repurchase value of up to 77 per cent depending on the duration.
As per a report in the Economic Times, the middleweight motorcycle market, where Royal Enfield holds a leading position, is witnessing heightened competition with the entry of models from Bajaj-Triumph and Hero-Harley. To address this increased competition, Royal Enfield introduced the guaranteed buyback program at this juncture.
Meanwhile, Eicher Motors’ motorcycle division has pledged to spend between Rs 1,600 and Rs 1,700 crore in FY24, its highest-ever annual investment. Roughly Rs 1,000 crore of this will be allocated towards developing new goods for Royal Enfield and building up capacity to guarantee that the company doesn’t miss out on any demand due to shortages, reports state.
Royal Enfield-OTO Capital (Buyback Scheme): Benefits
At the end of the guaranteed buyback period, customers will have several options. They can decide to retain, return, or exchange their motorcycle for a new Royal Enfield model. The program offers the advantage of a guaranteed buyback value for their existing Royal Enfield motorcycle and the added benefit of reduced monthly EMIs for customers.
According to the company, this move establishes a groundbreaking standard for the industry and has the potential to greatly expand and elevate the mid-size motorcycle segment in India by reshaping the conventional motorcycle purchasing process.
This programme will first be accessible at dealerships in the following 12 cities: Bengaluru, Chennai, Noida, Lucknow, Pune, Hyderabad, Delhi, Ghaziabad, Jaipur, Bhopal, Indore, and Ahmedabad. It will soon be extended to additional cities.
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