IBEF: September 25, 2020
On Thursday, Maruti Suzuki India Ltd, the country's largest carmaker, said it had launched its vehicle subscription service, Maruti Suzuki Subscribe, for citizens in Delhi, NCR (Noida, Ghaziabad, Faridabad, Gurugram) and Bengaluru. In the next two to three years, the organisation plans to carry out this initiative in up to 60 cities.
Maruti Suzuki India Ltd (MSIL) said in a statement that the company has partnered with ORIX Auto Infrastructure Services India, a subsidiary of ORIX Corporation, Japan, to launch Maruti Suzuki Subscribe for these cities. Through this facility, customers can opt to subscribe to the new Maruti Suzuki ARENA Swift, Dzire, Vitara Brezza, and Ertiga and the new NEXA Baleno, Ciaz, and XL6, it added.
The company said, "Maruti Suzuki Subscribe allows a customer to use a new car without actually owning it and by paying an all-inclusive monthly fee that comprehensively covers complete maintenance, insurance, and roadside assistance". Customers can choose a subscription period of between 12 months and 48 months and pay a monthly subscription fee starting at Rs 14,463 (US$ 196.06) (including taxes) for Swift Lxi in Delhi for a period of 48 months.
Upon completion of the tenure of the subscription, the consumer can often choose to modify, expand or purchase the vehicle at a market price. A customer can pick, under Maruti Suzuki Subscribe, a white number plate for which a vehicle is registered under its name or a black number plate with a vehicle registered under ORIX.
MSIL Executive Director (Marketing and Sales) Mr Shashank Srivastava stated, "The program is especially focussed to bring convenience to the individual customers. Besides the flexibility of tenure, it offers nil down payment and includes registration costs, insurance, and its renewal as well as routine maintenance". He added that the roadside assistance service brings total peace of mind to customers. He said, "progressively we aim to offer Maruti Suzuki Subscribe in 40-60 cities in the next 2-3 years."
Mr Srivastava stated that the vehicle subscription market is new to India and as such offers huge untapped potential. Globally, the penetration of such leasing programs varies between 5 percent and 30 percent.
ORIX India MD and CEO Mr Sandeep Gambhir said, "Maruti Suzuki is an aspiring brand and we believe that this partnership between two industry leaders will enable us to fulfil many dreams through our creative and curated car subscription options,". He added that this new service is part of the strategy of the company to partner with market leaders like Maruti Suzuki with products that build a better customer experience and new avenues of ownership and use.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.