Indian SUV maker Mahindra and Mahindra has launched a new subscription-based service for retail customers planning to buy one of its cars. Under this service, buyers can own a Mahindra SUV for a monthly subscription fee instead of buying it for the full price of the vehicle.
Mahindra has offered XUV500, XUV300, Scorpio, TUV300, Marazzo, Alturas G4 and KUV100 NXT under its new subscription model. The monthly subscription fee begins at Rs 19,720, and includes insurance and routine maintenance charges for the vehicle. The term of subscription will be between one to four years.
Mahindra has launched the subscription service in partnership with self-drive car rental service Revv. In the first phase, the service will be available in Delhi-NCR, Mumbai, Pune, Bangalore, Hyderabad, Kolkata, Chandigarh and Ahmedabad.
For availing the subscription service, customers will have to share their personal details to confirm their eligibility for the offer. Once confirmed, they will have to pay a refundable deposit based on the chosen model and the selected usage period. The company will then order for the vehicle.
Mahindra claims that the ordered vehicle will be delivered to the customer within a month. The first month's subscription fee would have to be paid in advance before the vehicle is delivered.
"With this flexible, highly affordable offering, we hope to help our customers fulfil their aspiration of driving their desired vehicles without necessarily owning them. This in turn will also attract a whole new set of customers to brand Mahindra. It also aligns with our larger vision of transforming the face of mobility in India," said Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, Mahindra & Mahindra.
The Indian auto industry reported its worst sales performance since 1997-98. Sales figures have gone down across the board for a good part of the ongoing year. Auto companies have been struggling to revive demand in a sector feeling the heat from a sluggish economy, tepid consumer sentiment, liquidity crisis and overflowing inventories.