Royal Enfield launches first of its kind buyback program with OTO Capital
Royal Enfield has launched an assured buyback program for its motorcycles with OTO Capital. The program aims at ensuring a smooth and seamless ownership experience for customers, Royal Enfield said in a statement.
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.
