Mahindra is to enter India's car leasing market with an offering designed to appeal to millennials in association with Orix and ALD Automotive.
Mahindra says it will expand purchase options and make the 'ownership experience of these vehicles more affordable and convenient'.
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Customers will 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.
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'.
Mahindra's lease offering will cater to individual leasing for working professionals and SMEs and will be available across six cities: 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. The lease offer will be available on Mahindra's personal portfolio of vehicles such as the KUV100, TUV300, Scorpio, Marazzo and XUV500.
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By GlobalDataThe company has partnered with leasing service companies Orix and ALD Automotive. The leased vehicle will be available for period of up to 5 years depending on the city and model selected.
Speaking on the lease offering on Mahindra's personal range of vehicles, V S Parthasarathy, Group CFO & Group CIO, Mahindra & Mahindra Ltd said: "Our Leasing model is a category creating product offering, a 'no-worry' experience for customers who prefer convenience over ownership. It aims to bring a new class of customers, including professionals, small businessmen and millennials, into the M&M car experience – who were waiting on the sidelines. Going forward, I am confident that leasing will gain more currency and the penetration levels will move in line with global trends".
According to Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, Mahindra & Mahindra Ltd: "We are happy to introduce this unique leasing offering for our retail customers in association with Orix and ALD Automotive. Our lease offering for retail buyers aligns with our larger vision of transforming the face of mobility in India, disruption being at the very core. With this offering, 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".
Mahindra says that car leasing has penetration of less than 1% in India. It says that with growing ownership cost of mobility and a penchant for customised services, a subscription-based model will set new ground rules for acquisition of vehicles.
Mahindra also says the challenges, for leasing, 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'.
