Toyota has launched a car-leasing business in India earlier this month targeting growing demand for vehicle rentals.

Its local manufacturing and sales subsidiary Toyota Kirloskar Motor Pvt Ltd (TKM) last week announced the launch of the Kinto leasing service in the Delhi New Capital Region (NCR) and in the cities of Mumbai and Bengaluru.

TKM’s senior vice president for sales and marketing Naveen Soni pointed out that more and more customers increasingly prefer to rent their vehicles rather than own them outright, adding “demand for vehicle leasing and subscription is expected to grow significantly in India in the coming years”.

TKM now offers corporate clients three- and five-year leasing contracts, while for private buyers it offers two- and four-year contracts, on models such as the Yaris compact sedan, the Glanza hatchback, Camry Hybrid, Innova Crysta and Fortuner SUV. “In time, we want to provide all possible models of mobility services by working closely with our corporate, fleet customers and subscribers”, Mr Soni added.

Monthly fees start at INR21,000 (US$280) for the Glanza model, including maintenance, insurance and roadside assistance. TKM said it plans to expand the service to 10 major cities nationwide within a year.

Toyota recently launched Kinto, a new brand dedicated to offering mobility services to users across Europe. Toyota says Kinto forms part of its global vision to ‘evolve into a mobility company by providing all kinds of transportation-related services to people around the world’. It includes ride-hail services and replaces Yuko – which operated in several European cities. Kinto-branded services include Kinto Flex, a subscription-based car leasing, “offering greater flexibility and a premium experience.”