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Through the leasing model, Etrio intends to unlock the current strong demand for electric cargo vehicles.
Through the leasing model, Etrio intends to unlock the current strong demand for electric cargo vehicles.

Etrio launches EV leasing plan to push for more green tech in logistics

  • The plan, according to Etrio, is to enable mass deployment of EVs that would save cost of upfront buying for companies.

Bengaluru: Etrio, an electric vehicle (EV) mobility solutions provider, on Tuesday said that it had launched a leasing model of its three-wheelers to help promote increased use of green technologies in the logistics space.

The plan, according to Etrio, is to enable mass deployment of EVs that would save cost of upfront buying for companies.

"Through E-Lease, we intend to unlock this current strong demand for electric cargo vehicles. Our ground-breaking lease offering will provide a great opportunity for various corporates, including logistic players to electrify their fleet and at the same time retain their asset-light business model," Deepak M.V., chief executive officer and co-founder of the company, said in a statement on Tuesday.

“E-lease" will be for a minimum of 20 vehicles for a period ranging from 18-42 months at 7,000 per month and the company aims to put 1,000 vehicles on Indian roads in the next six months through the combination of its sales and leasing channels.

Etrio said that the new scheme will be provided to customers based on the strength of their financial and operational track record and also that it will have additional top-up services like Annual Maintenance Contract (AMC) and Roadside Assistance (RSA).

“The best feature of E-Lease is that it provides the customer a lease rental which is much lower than the EMI loan as a prescribed resale value of the vehicle is deducted upfront. Further, the customer has two options at the end of the leasing period 1) Return the vehicle 2) Own the vehicle by paying the agreed resale value," Deepak said.

The EV rental model borrows from firms in the expanding mobility ecosystem in India which have been trying to convert their respective fleets to bring down operational and maintenance costs as well as reducing carbon footprint.

Etrio currently offers their services to large ecommerce players like Amazon, Flipkart and Big Basket, among others, the company said.

Mobility startup companies have been among the hardest hit due to the covid-19 pandemic. The segment is seeing some recovery but has largely used the time to chart out new business models, including switching to EVs that have lower operational and maintenance costs as well as the availability of offers that include staggered payments to buy the battery which accounts for almost half the cost of the vehicle.

Ola, Uber, Bounce and Vogo, among other players, in the mobility segment have charted out plans to convert a significant portion of its fleet into EVs. Companies in this space have also formed partnerships with other startups who help enable EV-related infrastructure, finance and leasing and battery swapping stations to bring down "range anxiety", a term used for owners fearing running out of charge.

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