Covid times: Own a new car without buying it
To counter dipping sales from dealerships in this Covid-induced challenging times, carmakers have rolled out leased subscription-based car service as an alternative revenue stream.
So, now you don't have to own or hire your favourite car. You can simply lease and subscribe one for a minimum period.
With rising fuel costs, interest rates and rapidly depreciating value, the leased subscription model by carmakers allows you to own a brand new vehicle at zero down payment but at a fixed monthly subscription fee and the fuel cost. Car firms take care of insurance, road tax, and maintenance.
Carmakers such as market leader Maruti Suzuki, Hyundai, Mahindra, Volk-swagen and MG Motor are enticing customers with their own lease subscription models.
Under the 'Maruti Suzuki Subscribe' brand, the company has tied up with Orix Auto Infrastruc-ture Services, a subsidiary of Orix Corporation, Japan, to launch the subscription service in India.
The service will begin as a pilot project in Gurugram and Benagaluru and will be initially available on Swift, Dzire, Vitara Brezza and Ertiga models from the Maruti Suzuki Arena channel and Baleno, Ciaz and XL6 from the Nexa channel, the company said in a regulatory filing on Thursday.
Giving a rough idea of the subscription price, Shashank Srivastava, executive director, marketing and sales at Maruti Suzuki India, on Friday told Financial Chronicle that "in Gurugram the hasslefree fixed monthly rental for Baleno, Dzire and Ertiga is Rs 24,000, Rs 26,000 and Rs 34,000, respectively."
It archrival Hyundai Motor, India's second biggest car maker, had last year launched its subscription model across India as part of its partnership with self-drive carsharing firm Revv.
The minimum lease rentals, for instance, for Hyundai Santro, Venue and Creta are Rs 7,673, Rs 15,488 and Rs 17,642, respectively. Hyundai Subscription provides the customers to opt for flexible ownership plan that includes subscription for short term / long term, swap across Hyundai range and zero down payment, No insurance/ maintenance for short subscription, including an assured-on demand delivery. Customers opting for one-year subscription or more will get an assured new car. Similarly, MG Motor
India also offers its subscription services through a strategic tie-up with Myles, the car sharing and car subscription company from Carzonrent.
"We charge only Rs 40,000 per month for subscribing to MG Hector SUV," an official from the MG Motor India told FC, adding that charges are lesser for 6 to 60 months subscription.
Mahindra & Mahindra vehicles are available in Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad, Kolkata, Chandigarh and Ahmedabad at a subscription price starting from Rs 19,720 per month.
Škoda India said its monthly lease rental for the Rapid, Octavia, Superb, and Kodiaq will start at Rs 19,856 and cater to salaried individuals, professionals and companies.