The Indian automobile industry is entering into a new phase of sales thanks to Maruti Suzuki. The Indian automaker announced last Thursday that they will be starting subscription plans for a large number of vehicles it offers in the Indian market. The company is doing this to offer the flexibility of driving a car without actually owning it. This model is comparatively common in western markets and has now started to gain traction in India.
The subscription plans offered are relatively cheaper than the cost of acquiring your own car. It is also a viable option for first-time car buyers who are not willing for a long-term financial commitment.
In one of the press statements, Maruti announced its tie-up with ORIX Auto Infrastructure Services India. ORIX will now offer the subscription plans in Delhi/NCR and Bengaluru. Those who are interested can easily choose between Baleno, Ciaz and XL6 from Nexa and between a new Swift, Dzire, Vitara Brezza and Ertiga from Maruti Suzuki Arena network.
What Is The Price of The Subscription Plans?
The company will offer different kinds of plans which would range from 12 months to 48 months, depending on the car selected. Talking about the monthly rental fee, it starts at Rs 14,463 (all taxes included) for Swift LXi in Delhi for a 48 months period. The charges will cover different expenses like maintenance, zero-dep insurance and 24×7 roadside assistance.
But What Will Happen At The End of The Subscription Period?
At the end of every subscription period, the customers will get 3 options to choose from:
- Upgrade the vehicle,
- Extend the period, and
- Buy the car at market price
Is The Subscription Programme Really Viable?
The Executive Director of Marketing & Sales at Maruti Suzuki, Mr Shashank Srivastva said that vehicle leasing programmes are pretty new to the Indian market. And globally, it has only been penetrated by 5% to 30%. He also said that this programme offers huge untapped potential and not just for the company, but for the customers too. The customers can enjoy having their own car without actually owning it and can have peace of mind from bothering about maintenance costs & insurance renewal.
Mr Srivastava also added that the company’s intention is to expand the subscription programme to 40-60 cities in India in the next 2-3 years.