Mahindra to enter the car leasing market to grow PV sales

The car manufacturer would be making cars from its personal portfolio of vehicles available on a monthly lease programme.

Published On Oct 10, 2018 05:58:00 PM

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Mahindra to enter the car leasing market to grow PV sales

Mahindra has announced that it shall be introducing a leasing option for buyers. The carmaker says that this will give its customers a unique ownership experience of its passenger vehicles.

In the initial phase of this programme, the car manufacturer will offer its KUV1OONXT and XUV 500 at a monthly lease rental starting at Rs 13,499 and Rs 32,999, respectively. As part of this strategic bid designed to accelerate sales, the company will later expand purchase options and make the experience of owning Mahindra vehicles more affordable and convenient.

Mahindra has said that the benefits of leasing cars include total convenience, a lower or no down payment, zero risk on the vehicle's resale value and a fixed EMI inclusive of maintenance costs. Leasing cars is thus gaining an increasing acceptance in the market and offers greater convenience to the customer, as opposed to actually owning a car.

Leasing also makes having a car much easier, since there is no initial down payment, and the customers have the flexibility to upgrade their models. Once the lease scheme is over, the buyer can return the vehicle to the company without dealing with the hassle of resale.

As part of this scheme, Mahindra's rental cost will include insurance, end-to-end maintenance, on-road assistance, repairs and a 24-hour replacement vehicle – among other services that will ensure the customer a hassle-free experience while using Mahindra vehicles.

This leasing plan will cater to working professionals, SMEs and will be offered across six cities – Pune, Ahmedabad, Bangalore, Hyderabad, Mumbai and New Delhi – in the first phase of its launch. In phase two, the scheme will be extended to 19 more cities across India. At this stage, the leasing options will be expanded further to include the KUV100, TUV300, Scorpio and Marazzo.

The vehicle will be available on a lease period of up to five years, depending on the city and model selected. For its foray into the leasing market, the Indian automaker has partnered with Orix and ALD Automotive, who have experience in the car leasing market.

"Our leasing model is a category creating product offering, a ‘no-worry’ experience for customers who prefer convenience over ownership. It aims to bring a new class of customers – including professionals, small businessmen and millennials – into the M&M car experience," said VS Parthasarathy, Group CFO and Group CIO, Mahindra, speaking on the introduction of lease offering on Mahindra's personal range of vehicles. He also said that he was confident that leasing will gain more traction, moving forward, and keep with global trends.

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