The preference for subscription basis ownership is expected to rise post the lockdown because it is more affordable and customers feel the need of having a personal vehicle instead of public transport or shared mobility solutions.
Carmakers have been trying to make vehicle ownership easy and more affordable and one way to do that is subscription based ownership or car leasing. The preference for subscription based ownership is expected to rise post lockdown as it is more affordable and customers too are feeling the need of having a personal vehicle instead of public transport or shared mobility solutions. In September 2020, Mahindra had partnered with Revv cars to offer a subscription based ownership experience for its customers and the company is expecting the demand to increase.
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Speaking to Siddharth Vinayak Patankar, Editor-In-Chief, carandbike on the Freewheeling with SVP webisode, Veejay Ram Nakra, Chief of Sales and Marketing at Mahindra said, “I think leasing and subscription are going to be the next thing when it comes to the ownership of vehicles. Today you can get a XUV300 for as low as ₹ 25,000 subscription fee for a month making it absolutely affordable where you don’t have a long term commitment and you get to experience the product. Post COVID people will want the ownership of a vehicle rather than going for shared mobility. We have already seen some inquiries coming in on our digital platforms for people wanting to look at subscription as an option.”
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Interestingly, the demand for owning vehicle on subscription basis in not just coming from metro cities but from all parts of the country including tier two cities. “The interesting thing is that it is not necessary that these enquiries are urban centric, they are coming from different parts of the country which is what makes it very encouraging that people are absolutely open to it,” Nakra added.
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The offer begins at a subscription price of ₹ 19,720 per month for Mahindra SUVs, inclusive of insurance and routine maintenance charges. The customers get benefits like zero down payments, no road tax, zero risk on the resale value of the vehicle, and a fixed amount that includes routine maintenance costs. They also have the option to change the vehicle model after a certain minimum subscription period. Once the subscription period is over, the person can return the vehicle to the company without the hassle of selling it, and get a new vehicle.