Mahindra & Mahindra has announced their partnership with Revv to offer a monthly subscription plan on 7 of its product from its personal vehicle range.
Mahindra has recently announced that customers can now opt to get Mahindra cars via a monthly subscription program. As Mahindra has partnered with the self-drive car-rental company Revv, to begin with, this scheme. While Revv is not specific to Mahindra since it already offers such subscription plans with different other cars and manufacturers. To start with Mahindra will offer 7 of its product from KUV100 to XUVs to Marrazo and Scorpio. The prices for the subscription will range somewhere between 15,000 to 50,000 INR, depending on the product selected.
Also Read - Tips to Buy Used Mahindra XUV500.
Mahindra is now offering monthly subscription plan on its product range in partnership with Revv.
While this isn’t the first time that Mahindra products will be available in such a product scheme. Mahindra has been already sharing a tie-up with the self-drive car rental giant Zoomcar to rent out Mahindra product on monthly subscription plans under their ZAP services. Mahindra is also present with the other portals such as ALD automotive and ORIX since last year as a part of an official tie-up to sell the vehicle in such vehicle leasing business model.
Also Read - Nissan Kicks Added To ZoomCar ZAP Program.
To let the masses know about the benefits of opting for a leasing or subscription program, Veejay Nakra, the chief of marketing and sales quoted, “With the changing era, the millennials want to experience brands in a different way with avoiding long-term commitment in terms of time or capital investment”. Well, how true this statement is still not known, but to check a count, Mahindra registered a sale of 2500 units via this sales model last year.
Also Read - Buying Tips For A Used Mahindra Scorpio.
Revv also offers such subscription plans with different other cars and manufacturers.
Subscription and leasing platforms like Revv, ZAP and Orix might all work on the very same business strategy, but there is some noticeable difference between the subscription to a car and leasing a car. The subscription means that the owner would rent the car for a particular duration of time, like a couple of months or so, whereas the leasing means the owner plans on keeping the car for a much longer duration just as in the case of ownership and can even end up buying the particular vehicle at any given time.
Also Read - Volkswagen Partners With Zoomcar For Shared Mobility In India.
Mahindra is also present with other portals such as ALD automotive and ORIX to sell the vehicles in such vehicle leasing business model.
The subscription-based cars come with blacks registration plates with text in yellow, but the leased cars are registered exactly like the cars with private ownerships. This business model may sound synonymous to getting a car on loan, but it saves the owner from upfront costs like the initial down-payment and the annual insurance premium. Some companies even offer scheduled maintenance (regular service) as a part of the plan.
Also Read - Hyundai Motor partners with Revv for car-sharing service.
Appreciating or disparaging this business model is not fair, since it is still in its early incubating stage, but it will be a tough fight against the private ownership of the car as car ownership is still an aspiration consideration in India.