Future Of Car Subscription Post COVID-19 In India
Amidst the first lockdown, Mr Malhotra, a Gurgaon-based entrepreneur, who owns an online frozen food delivery platform, got to know about the car subscription model. Analyzing the benefits it provides, he initially subscribed to an MG Hector. However, in just six months, he upgraded his subscription and today owns an Audi A4.
Well, what he enjoys the most is the freedom of owning a car without having to think about the expenses of car maintenance, insurance, road tax, and so on.
Similarly, Ms Jain, a software engineer working in Hyderabad, worried about her father’s daily commuting during the pandemic. She wanted to buy a car for him but wasn’t ready for a big-spending commitment in these uncertain times. This is where car subscriptions came as a savior. She subscribed to a Maruti Baleno for her father for 12 months, and that helped her save on taxes while giving an alternative to not buying a car.
Like Mr Malhotra and Ms Jain, many people are now opting for a car subscription. It’s because the model eliminates hassles related to paying substantial down payments and other related costs such as insurance, maintenance, road tax, etc. Moreover, a car subscription comes with shorter lock-in periods and reasonable pricing, hence making it a more flexible, affordable, and convenient replacement for car/vehicle ownership.
Hence, the winds of change are blowing through the Indian automobile space. This newest trend of car subscription is gaining traction, especially amongst salaried professionals such as senior-level managers and CXOs, who are frequently moving jobs between cities and do not want to bother about transporting a car. As easy as ordering a burger, this model also works out really well for government employees, doctors, lawyers, and entrepreneurs, who are identifying app-based mobility services as the budget-friendly alternative to vehicle ownership.
Undoubtedly, there is a shift in consumer buying decisions, where the needle has moved from owning to experiencing, and this is exactly what car subscription is offering.
In simple words, a car subscription offers a service where a customer just needs to pay an all-inclusive monthly fee that covers all the charges. And hence, they have the right to own a pre-owned or a new car of their choice for 6 to 60 months, without having to worry about any additional expenses like insurance, maintenance, etc. Moreover, they have the advantage of subscribing to a new model easily once their subscription plan is over.
Leaving no stone unturned, key players in this segment are also offering personal car subscription plans that provide consumers the flexibility to mobility. In fact, all cars are delivered keeping in mind the utmost safety measures. Brands are conducting stringent sanitization and following contactless delivery. They are offering cars integrated with tech-driven features to provide the best mobility experience.
In the years to come, the vision is to make personalized car subscription a more feasible and hassle-free alternative to car buying while providing instant ownership to consumers. It’s important to note that India’s car rental market has grown significantly over the past years. And globally, the number of users is projected to reach 77.5 million by 2025.
