As automakers slowly increase their production after the Covid-19 lockdown and sales also gradually pick up, they have also started offering the subscription option to consumers who may want to shift from public transport and shared mobility solutions to personal cars. However, higher cost vis-a-vis buying a car and the minimum lock-in period of 12 months is a constraining factor in the popularity of such services, industry analysts said. India’s largest passenger vehicle manufacturer, Maruti Suzuki India on Friday expanded its offering in the subscription segment with a partnership with Myles Automotive Technologies under what it calls the ‘Maruti Suzuki Subscribe’ brand, in Hyderabad and Pune as a pilot project.
Under the Maruti Suzuki Subscribe, customers can choose to subscribe a new Swift, Dzire, Vitara Brezza and Ertiga from Maruti Suzuki Arena and a new Baleno, Ciaz and XL6 from Nexa for a period of 12, 18, 24, 30, 36, 42 and 48 months, the firm said. So a customer can lease the latest edition of Swift Lxi for Rs 17,600 a month (all inclusive) in Pune and Rs 18,350 in Hyderabad. The minimum lock-in would be for 12 months. If a customer was to purchase a Swift Lxi model, priced at Rs 5.19 lakh (ex showroom), the EMIs would be Rs 11,000 for a 5-year loan with Rs 57,000 down payment.
Earlier in July, Maruti had tied up with Orix Auto Infrastructure Services, a subsidiary of Orix Corporation, Japan, to launch the subscription service as a pilot in Gurgaon and Bengaluru. Maruti is not the first manufacturer to venture into the subscription model. Prior to it Hyundai Motor India, Mahindra and Mahindra, Skoda, and Fiat started offering such services middle of last year. In the last one year or so since it launched the services, Hyundai Motor has leased only around 3,000 vehicles, which points to the fact that such services are yet to gain high popularity. Hyundai’s entire portfolio is available for leasing by salaried individuals, working professionals, small and medium enterprises, corporates and public sector companies in collaboration with ALD Automotive India. The price of subscribing a Hyundai car ranges from Rs 16,000 a month for a i10 Grande to Rs 26,000 for a Verna.
Apart from the manufacturers offering subscription models, there are standalone platforms also like Zoomcar.com, where customers can subscribe to Mahindra Marazzo for Rs 35,498 a month in Mumbai or Renault Kwid for Rs 20,498 a month. While automakers are offering such services for a minimum period of 12 months, platforms like SwitchRevv.com or Zoomcar.com offer subscription for even one or two months. The subscription service of Maruti offers many features such as zero-down payment, complete car maintenance, insurance, 24×7 roadside support and no resale risk. Myles will take care of vehicle maintenance, insurance coverage and road side assistance through Maruti Suzuki’s dealer channel. “Once the subscription tenure is over, the customer can also avail buyback option,” Maruti said.
“In the changed business dynamics, many customers want to shift from public transport and shared mobility solutions to personal cars. They want mobility solutions that are easy on pocket and do not involve long-term financial commitments. Maruti Suzuki Subscribe addresses these changing needs of customers,” Maruti Suzuki India executive director (marketing and sales) Shashank Srivastava said.
