To boost scooter sales, Hero MotoCorp has come up with an innovative buyback scheme called BuySurance. Under this first-of-its-kind scheme in India, customers buying Hero scooters will get assured buyback option from used two-wheeler brand CREDR.
A guaranteed buyback certificate will be issued to customers by CREDR, which will list all the buyback amounts for the next five years. The fixed buyback amounts will be in a reducing pattern, applicable in six monthly intervals. To claim BuySurance benefits, customers just need to visit their Hero dealership with their scooter and BuySurance certificate.
Hero MotoCorp’s BuySurance scheme was first launched in Pune, but now it has been introduced in Delhi and Bengaluru as well. In the future, there are plans to cover the top 10 auto markets in the country. Speaking about BuySurance, Hero MotoCorp Head (Sales and After Sales) Sanjay Bhan said that the scheme is highly disruptive and guarantees assured buyback with fixed pay-out to customers who may want to sell their Hero scooter at a later date.
BuySurance appears to be a pioneering idea, especially at a time when scooter sales have turned negative in FY19. Earlier, scooter sales growth was in double-digits in the last 10 years. According to stats reported by SIAM (Society of Indian Automobile Manufacturers), a total of 67.01 lakh scooters were sold in FY19, which is lower than sales of 67.19 lakh units in FY18.
Hero MotoCorp’s loss in scooter sales in FY19 was 19.6%, which is the biggest in this industry. As the auto sector experiences widespread slump, Hero’s BuySurance scheme may have come at just the right time and prove to be useful in boosting sales. It will help Hero take on market leader Honda Activa, which is the best selling scooter in the country.
Hero’s BuySurance scheme may be attractive to customers who may have plans to upgrade at a later date. With BuySurance, customers can buy with confidence and encash their investment anytime they want over the next five years. They can use the funds to upgrade to a new vehicle, for example, an electric scooter.
Hero MotoCorp currently offers four scooters – Duet, Maestro Edge, Pleasure and Destini 125. Next-gen Pleasure, updated Maestro Edge 125 and a new surprise offering will be launched on May 13.