Car subscription seems to be setting into the urban market post lockdown as people are moving away from shared mobility to private cars. People who dont want to get into a car loan commitment for a long period are opting for car subscription service, as per Greg Moran, CEO and co-founder of Zoomcar. The number of subscriptions is higher in Bengaluru, Hyderabad and Pune followed by Chennai, Mumbai and Delhi NCR. “We are already seeing a 400% rise in demand now. Considering the impending recession, car subscriptions will prove to be a better option than ride hailing and public transport,” said Moran.
Under the subscription model, users need to pay a fixed daily, weekly or monthly rent to the firm. Many people who don’t want to invest in a new or used vehicle amid an uncertain economy are opting for this model.
The benefits include zero down payment and avoiding hefty loan, maintenance cost, insurance, registration and taxes. This also means no major additional expenses apart from fuel.
Car manufactures like Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Volkswagen, Nissan, Mercedes-Benz and BMW as well car rental firms like Zoomcar, Revv, Myles and Drivezy are offering subscription or leasing programmes.
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