You will now be able to become the proud owner of a brand new car, without having to buy it. Indian automakers are offering a subscription-based business model to help them weather the slump caused by rising gasoline prices, borrowing rates, and declining value.
Up until this point, you have either owned or rented an automobile. You may now “subscribe” for a car, which at least four Indian automakers are hoping would help them weather the slump brought on by rising gasoline prices, borrowing rates, and quickly declining value. By using the “Subscription model” offered by auto OEMs, you may purchase a brand-new car with simply the cost of gas and a set monthly membership price. Insurance, road tax, and maintenance are handled by the automobile company.
According to Rajeev Chaba, MD of MG Motor India, the automobile industry is not only a logical expansion, but it also adds a new income stream from mobility-as-a-service and introduces a completely new group of clients who get to experience the new set of services at a very early stage of their lives and careers.
The advantages:
Customers who subscribe gain entire ease, no down payment, no significant road tax, no danger to the vehicle’s resale value, and a fixed fee that includes maintenance costs. One has the freedom to switch between other car models at any time and maintain the same subscription in different cities.
Millennials today routinely change employment and are always searching for new chances, whether they are in India or overseas. To promote easy travel, this target demographic is shifting away from personal ownership and toward user-ship models, therefore a subscription-based business model fits them.
However, between 75 and 80 percent of first-time purchasers still come from India. According to Steffen Knapp, Director of Volkswagen Passenger Cars, “as many Indian consumers continue to appreciate the sense of personal ownership and view it as a matter of pride and personal advancement in owning a car.
