The Indian automobile industry is going through a turbulent period in the wake of COVID-19 outbreak. To cope with changing circumstances, manufacturers are unveiling new schemes and services to woo the end customer. Toyota Kirloskar Motors on its behalf, recently launched a car leasing and subscription service in the country. The Japanese brand is currently rolling out the new scheme in 3 cities namely Delhi-NCR, Bengaluru and Mumbai. In the coming months, it plans to bring this services to 10 more Indian cities.
According to this initiative, a customers can select any Toyota model of their choice for a time period of 3 to 5 years. To avail it, he or she would need to pay a fixed monthly lease fee. This lease fees would include things like vehicle maintenance, insurance and roadside assistance. In case, if you opt for the subscription-based service, there is a short-term period from 24 months to 48 months. Currently, Toyota car models like Glanza, Fortuner, Innova Crysta and the expected Urban Cruiser would be available for leasing and subscription services.
The services would carry a lot of traction among Indian consumers seeking flexible ownership of vehicles. Naveen Soni, Senior Vice President, Sales and Service, TKM in a statement elaborated on the new Toyota leasing and subscription services. "The role of Toyota’s Mobility Service is aimed at providing one such solution catering to emerging mobility needs of the customers,". Further adding, Mr Naveen said "Both leasing and subscription are expected to grow significantly in the coming years. In time, we want to provide all possible models of mobility service by working closely with our corporate, fleet customers and subscribers to understand their needs and offer customized and futuristic solutions."
Car subscription-based service is a new concept in India but is becoming popular in the global market. Soni further added “However, there is a need to create more awareness among customers as they may not be cognizant of the many benefits. For instance, customers may not be aware that they can lease new vehicles as per their preferences – models, variants, maintenance packages. Further, the main advantage of corporate leasing is that it enables tax merit for corporate employees”.
This subscription model will augur well in the coming days as automakers plan to introduce electric vehicles. The concept of using a car than owning one as the financial circumstances is the result of evolving consumer behaviour.
In other news, Toyota Kirloskar Motors is launching Urban Cruiser - a subcompact SUV this festive season with bookings reportedly opening by August End.