Automakers in India are relying on taping subscription model to highlight their vehicles specially electric vehicles amongst the target audience. Tata motors now is making Nexon EV available on subscription for a limited-period, till November 30, 2020.
The automaker announced special ‘Electrifying Subscription’ offer which will be available for the first 100 subscribers only. The automaker for this has partnered with Orix Auto, a Japanese diversified financial services group that offers innovative leasing & transportation solutions.
The offer allows customers to avail the electric SUV at an all-inclusive fixed rental starting at just Rs. 34,900/- per month, without the hassles of traditional vehicle ownership such as road tax and registration, insurance renewals, servicing and maintenance.
The customers can select the tenure of their subscription from a minimum period of 12 months to 24 and 36 months. This service is being offered in 5 major cities – Delhi/NCR, Mumbai, Pune, Hyderabad and Bengaluru.
The package includes comprehensive insurance coverage, on-call 24×7 roadside assistance plus free maintenance with periodic servicing and doorstep delivery. Moreover, customers will also get a complimentary personal EV charger that can be installed at their home or office, as deemed convenient. The facility can be easily accessed online with end-to-end support available. Following the tenure of their subscription, customers can either choose to extend it or just return the vehicle.
Other Automakers Offering Subscription:
MG Motor India has partnered with Zoomcar to leverage the latter’s end-to-end technology solution for its vehicle subscription platform. With the partnership with one of India’s largest personal mobility platforms the carmaker plans to penetrate deeper into the subscription market. The mobility platform is managing the subscription program on behalf of MG. The duo will extend MG’s latest vehicles in line with Zoomcar’s flexible 12-, 24-, or 36-month subscription program.
Toyota Kirloskar Motor has launched a car leasing & subscription program in India through a new vertical, Toyota’s Mobility Service (TMS) that will spearhead TKM’s future mobility initiatives in India. TMS plans to initially provide leasing and subscription to customers in cities like Delhi-NCR, Bangalore and Mumbai which will be gradually expanded to ten more cities within the first year.
Avis India has come up with a new service dubbed as AVIS Flexi 12. The service allows customers to rent a brand new car of their choice for at least a period of 12 months. The car will be registered for a private number plate in the name of Avis and will be exclusivity available to the customer for the entire duration. Other perks of the offering are that the service lets the customer do not require to pay a down payment and swap to another car at the end of their term or choose to extend the subscription.
The Maruti Suzuki in partnership with Myles, a self-drive car sharing company, has also announced its leasing programme in four cities namely Gurugram, Bengaluru, Pune and Hyderabad.
Volkswagen India with Orix Auto has signed a MoU to offer leasing solutions to Indian customers. The service is being offered in six cities – Delhi, Mumbai, Pune, Chennai, Hyderabad and Bengaluru. Hyundai India with ALD Automotive India, a leasing and fleet management company, is also offering subscription service across the same five cities
Therefore we see the vehicle-leasing business is rapidly picking pace in India. The car rental business has a penetration of less than 1 percent in India, whereas it is as high as 45 percent in developed nations so it is expected to grow aggressively in coming years.
