The monthly lease rental under the scheme will work out 20 per cent cheaper than buying the motorcycle on EMI, said Indian Motorcycle on launching the leasing facility in India for its bikes, reports Shally Seth Mohile.
Indian Motorcycle, the American niche bike manufacturer, said on Wednesday it would offer its models on lease.
"In India, this is the first time any two-wheeler will be available on lease through a tie up.
"The market has been challenging and has been static for high-end bikes.
"By offering leasing as an option, we can help enthusiasts who always wanted to own a model from Indian Motorcycle," said Pankaj Dubey, managing director and country head, Polaris India.
The tie-up, with Orix India, will help the maker of Scout, Chieftain, and Dark Horse motorcycles make its models more affordable and grow its volumes in a market where a high import duty has been a big deterrent for the motorcycle enthusiasts, said Dubey.
Buyers can now take a bike merely by paying equated monthly installments (EMI), without having to pay an upfront payment for three years.
With prices starting from Rs 12.55 lakh and going up to Rs 48 lakh, the high displacement models from Indian Motorcycle has a portfolio of 17 models for the Indian market.
They compete with high-end models from Harley Davidson.
Unlike Harley that assembles some models in the country, Indian Motorcycle doesn't assemble locally.
Therefore, its bikes attract a steep import duty (more than 120 per cent), which makes its models one of the most expensive among superbikes.
Recently, Indian Motorcycle launched two new models -- FTR 1200 S (Rs 15.99 lakh, ex-showroom) and FTR 1200 S Race Replica (Rs 17.99 lakh).
The monthly lease rental under the scheme will work out 20 per cent cheaper than buying the motorcycle on EMI, the company said.
With the exception of insurance, everything else will be included in the EMI.
At the end of three years, the lessee will have the option of paying the residual value and owning the bike, or to re-lease or return it.
"It's a very niche brand but a desirable one.
"So, any effort that makes the models affordable will lead to doubling of sales considering the small volume base they have," said Deepesh Rathore, co-founder and director at Emerging Market Automotive Advisory.
With the leasing offer and new FTR models, Dubey is hoping to achieve 30 per cent growth in Indian motorcycle volumes.
Polaris has sold close to 300 units of the brand in the past five years it has been on Indian roads.
The market for super-luxury bikes, in which Indian Motorcycle is positioned, was close to 150 units per annum in 2018 and is likely to end the year with a 10 per cent drop due to the slowdown in the broader market, said Dubey.