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

The automaker’s local manufacturing and sales subsidiary, Toyota Kirloskar Motor (TKM), last week announced the launch of the Kinto leasing service in the Delhi New Capital Region (NCR), as well as in Mumbai and Bengaluru.

TKM’s sales and marketing SVP, Naveen Soni noted more customers increasingly prefer to rent their vehicles rather than own them outright, saying: “Demand for vehicle leasing and subscription is expected to grow significantly in India in the coming years.”

TKM 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”, added Soni.

TKM said it plans to expand the service to ten major cities nationwide within a year.