OTO, a two- wheeler buying and financing platform has released its first Annual Two-wheeler Trends data, which decodes the top consumer performance, categories driving demand and adoption of two-wheelers and financing in India. The data also highlights the shift in consumer behaviour and trends seen through the pandemic with enhanced digital penetration in the market.
Bengaluru emerged as the top tier I city witnessing demand for two wheelers and its financing, followed by Hyderabad. Amongst the tier II cities Indore emerged as the top drivers for two wheelers and its financing. While most of the customers (median) were in the 24-35 years group, two-wheelers and its financing emerged as the preferred option amongst the middle-income range working professionals.
Commenting on the data, Sumit Chhazed, Co-founder, OTO said, “The emergence and acceptance of ecommerce and digitisation today has accelerated the growth of the auto sector. We, at OTO, provide a plethora of services to our consumers with the flexibility to compare and choose from the diverse available options.
This, along with the affordability fit serves as a wholesome experience for our buyers. As the two wheeler sales start to pick up post pandemic, along with increase in EV penetration, we have seen 19X growth at OTO in the last financial year itself.
“The data highlights that today’s savvy millennial consumers are increasing to digitally enabled financing options for their two-wheelers. In fact, we have seen a 4X growth in applications with the dealer base doubling over the last six months. We are also adding the largest dealers in the space, who want to enable affordability for their customers. We further expect to grow by 10X in the coming year too.” added Chhazed.
OTO provides two-wheeler purchase and financing for leading auto brands like Hero, Honda, Bajaj, Ather, Royal Enfield, TV, Suzuki, Yamaha, Vespa, Suzuki, KTM,Hero Electric, Okinawa, Pure EV, Ampere and Aprilla.The data finds 76% sales of scooters, compared to 24% of bikes in the last financial year, amongst which, 34% were EVs and 42% were ICEs. The most preferred brands selling through OTO remain Honda and TVS both on online and offline channels.
Other noteworthy report findings include:
● 23% of consumers opted for the resale of their two-wheelers through the convenient options available at OTO when tenure ends and 60% expect to extend the tenure to pay and own the two-wheeler
● 33% of two wheelers sold were premium bikes with average range of INR 1.5L
● 82% of consumers opting for the financing option available at OTO, while 18% preferred to buy two wheelers via OTO without the financing option.
● 2/3rd of consumers switched to EV owing to increasing fuel prices and 1/4th due to low cost of maintenance.
OTO has sold over 17,000+ two wheelers with the disbursal of 150+ crore so far, disbursing more than 150 crore worth of vehicles through its digital commerce platform. Its innovative financing model for 2-wheelers enables buyers to pay an upfront amount like any other loan but gets up to 35% lower EMIs with an option to retain, return or upgrade at the end of the tenure.
The platform works in partnership with various banks and NBFCs to provide the most hassle-free financing options to its customers. It also provides full auto lifecycle management, from credit underwriting to insurance, maintenance, and eventual resale of the vehicle.
About OTO Capital
OTO was founded in 2018 by IIT-Mumbai alumnus Sumit Chhazed and Harsh Saruparia to present a 10X simpler, faster and more convenient way for 20Mn Indians to buy and finance their 2-wheelers every year. The company is headquartered in Bengaluru, with its services also available in Delhi, Hyderabad, Chennai, Pune, Mysore, Ahmedabad and Jaipur.
OTO has created a dramatically simpler leasing-like financing model for 2-wheeler purchases where buyers pay a similar upfront payment like any other loan, pay up to 30% lower EMIs and have the option to own the 2-wheeler at the tenure end OR sell it back to OTO.
Around this core of “10X better” financing model & experience, OTO has added an app-based layer to help 2-wheeler buyers to find all the top options in one place, schedule a home test drive at their convenience and then choose to finance with OTO and continue to manage it - all in one place. With its 600+ dealer partners, OTO has financed more than seventeen thousand two-wheeler vehicles.