Mahindra & Mahindra Ltd (M&M Ltd) has announced introduction of leasing its passenger vehicles for retail buyers. The lease offer will be available on Mahindra’s personal portfolio of vehicles such as the KUV100, TUV300, Scorpio, Marazzo and XUV500. The company has partnered with Orix and ALD Automotive for this offering. The leased vehicle will be available for period of up to five years depending on the city and model selected.
The lease offering will include services such as insurance, end to end maintenance, on road assistance, accidental repairs, 24 hours replacement vehicle, etc, ensuring a hassle-free experience while using Mahindra vehicles. This offering has been designed at a monthly lease rental starting at Rs. 13,499/- per month for KUV100NXT and Rs. 32,999 per month for XUV500 to expand company purchase options, stated the company. Customers also have the flexibility to upgrade their models. Once the lease scheme is over, the person can return the vehicle to the company without the hassle of reselling it, and get a new vehicle. Mahindra’s lease offering will cater to individual leasing for working professionals and SMEs and will be available across 6 cities namely- Pune, Ahmedabad, Bangalore, Hyderabad, Mumbai and New Delhi in the first phase of launch. In its next phase, the lease offering will be extended to 19 more cities across India.
Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, Mahindra & Mahindra Ltd. has said that tje lease offering for retail buyers aligns with company’s larger vision of transforming the face of mobility in India. “We hope to help our customers fulfil their aspiration of driving their desired vehicles without necessarily owning them, thereby elevating customer engagement experience to the next level,” he added.
Leasing in India has been a known concept in many other segments and is slowly picking up in automotive sector as well. While currently car leasing has penetration of less than 1% in India, in developed nations it is as high as up to 45%. Infact over 30% of the new vehicles sales come from leasing in developed markets such as UK (45%), US (33%), Germany (32%) and France (15%). With growing ownership cost of mobility and a penchant for customised services, subscription-based model will set new ground rules for acquisition of vehicles. The concept of usage is gaining popularity over ownership. The challenges in India are manifold as the wear and tear on vehicles are higher due to the road conditions, accidental damages and repair costs are higher in addition to unregulated and unorganised resale market and the changes in technology – all adding to the costs associated with mobility.