- Mahindra and Mahindra Ltd. (M&M) which is India’s leading utility vehicle manufacturer has rolled out a subscription-based passenger ownership model in partnership with Revv.
- Mahindra has rolled out 7 models from its passenger car portfolio for a subscription including XUV300, Scorpio, XUV500, Marazzo, Alturas G4, and others.
Mahindra and Mahindra Ltd. (M&M) which is India’s leading utility vehicle manufacturer has rolled out a subscription-based passenger ownership model in partnership with Revv, an Indian startup which is 4 years old and operates in the car-sharing space.
This is seen as an attempt as M&M’s attempt to fulfill the car ownership requirements of the salaried and self-employed buyers, mostly today’s youth, in tier 1 and tier 2 cities of India. The announcement comes as the arrival of the festive season has failed to support the falling domestic vehicle demand.
This model will be available on selected car models for a time frame of one to four years, where the customer will be required to pay a refundable deposit and a month’s charges in advance, said the company.
Mahindra entered the car leasing space for retail buyers by partnering Orix and ALD Automotive.
“The carmaker plans to address all kinds of customer requirements ranging from complete ownership, leasing and now subscription-based models,” said Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M Ltd.
The company also said it has recorded annual volumes of about 2,500 units of the car under its personal portfolio of car leasing business in the fast year.
The car subscription model comes with a lot of benefits which includes zero down payment, no road tax, insurance, no risk of resale value and no maintenance cost as the monthly fixed amount includes all those costs.
Nakra also said, “The subscription model offers flexibility as no checking of the customer’s cibil score is required. Although the minimum duration is one year, the subscription plan can let young professionals change or upgrade the cars they want. They get access to driving a brand new car under our subscription-based model,”
Mahindra & Mahindra has rolled out 7 models from its passenger car portfolio for a subscription including XUV300, Scorpio, XUV500, Marazzo, Alturas G4, and others. In partnership with Revv, these cars will be available across 8 cities Delhi NCR, Mumbai, Bangalore, Pune and more under the first phase. The second phase is expected to add more than 11 new cities to the above model.
Revv is an Indian startup which offers multiple options to meet all your self-drive needs – Hourly Rental, One-way Outstation, SWITCH (Asia’s first & one of its kind monthly car subscription) and Revv-to-Work. It has up to 3,500 cars and is present in 15 different cities. It also has an arrangement with Hyundai Motor India Ltd, besides M&M.
Revv has its single largest market in the IT hub of India, Bangalore followed by Mumbai, Pune, and Hyderabad and is planning to expand to 22 cities by next week.
At the time, when the automotive industry is facing a huge fall in demands of domestic vehicle, this seems a smart move by Mahindra & Mahindra to tackle the same.