It is reported that Mahindra & Mahindra has entered India´s car lease scene. Last October, The automotive company introduced its lease plan for customers with prices that would make the purchase easy to pay, counting with payment options that would go from ₹13,499 (£0, 15) the rental Price of the KUV100NXT to ₹32,999 (£0, 37) for the XUV500 monthly for a period of five-year rent. In addition, Mahindra & Mahindra also offers a lease plan that lasts for 3 years in order to provide more options for those that cannot afford the 5 years lease.
Since less than 1% of vehicles in India are offered to lease, M&M spotted the necessity of more car rental services that would give a chance to common citizens to have the experience of having a car, for this reason, M&M has started this new project partnering with Orix and ALD Automotive where the expectation is to expand the range of leasing across the country. However, the main leader of this association is Mahindra & Mahindra since is the company providing the cars.
Mahindra has expressed that leasing vehicles will expand the purchase rate and help people to experience the ownership feeling through these affordable and easy to get contracts. Mahindra also says that his buyers will count with the great option of upgrading their car model without waiting for the 5 or 3-year contract giving the facility to avoid paperwork in order to obtain the new automobile to keep enjoying the experience of leasing.
The project will start first in the six main cities of the country where the demand for car leasing appears to be highly required. In fact, Mahindra % Mahindra enters India´s car lease scene in cities such as Ahmedabad, Bangalore, Pune Mumbai, Hyderabad, and New Delhi. They have learnt from the car leasing deals UK scene and added their own ideas on top.
The automobile industry has also reported that as soon they succeed in the major cities, the company will initiate its second phase of expansion covering 19 more cities within the country offering cars like TUV300, XUV500, KUV100, Marazzo and Scorpio models with affordable prices.
Nevertheless, Mahindra & Mahindra is not the only one landing in this new business since Parthasarathy industry has been around for a while offering similar services. Regarding the competition, Mahindra has declared during an interview that they expect to obtain great benefits with the project while they provide a great solution for car´s business in India. The businessman has also said that they are looking for a new product offering with their new leasing model that expects to be taken as an example for future projects. He has also added that they were more than happy to introduce a solution for those that do not count with the opportunities of having a car, focusing in the middle-class citizen that is composed by professionals, millennials and small businessmen which is the area with a high transportation demand.
The compromise M&M has shown through its project is to improve the transportation service all across India, inviting other companies and even the government itself to participate in the project in order to repair the roads and create new routes to make transportation easier and accessible for the areas outside of the bigger cities of the country. In this order, the cars condition will be optimized for offering the best service possible for citizens.