As per some unconfirmed reports coming in, Maruti can very soon start leasing vehicles to retail customers.
This will enable users to drive Maruti cars, without owning them.
How will it work out?
Maruti’s New Business Model: Leave Vehicle
As per the reports, Maruti has been planning to jump into the car leasing business since long, but due to the unprecedented slowdown in the auto industry due to coronavirus, their planning has now intensified.
Soon, Maruti aims to start leasing vehicles to the retail customers, directly via the dealers.
This will not only help Maruti to make use of their vast unsold inventory, but also help the dealers to kickstart a new source of revenue.
Maruti’s rivals such as Hyundai Motor India Ltd and Mahindra and Mahindra Ltd (M&M) have already started leasing vehicles to individual car owners. Mercedes-Benz India and BMW India too have their own car leasing model, for individual users.
Infact, Maruti had started leasing cars to corporates, but this model didn’t work out.
How Leasing Cars Will Work?
As of now, most of the car brands are collaborating with car rental companies like ZoomCar and Revv.
The car manufacturers ink deal with these companies, and then provide their cars to them, who in turn provide self-driving car options to the end users.
Now, Maruti is planning to do the same, via their own dealers.
An unnamed insider at Maruti said, “It’s still not clear when this will be launched, but the projects team has been working on this. Maruti has been giving its cars to Zoomcar and other platforms, but if they plan to go through the dealers, then it will help dealers as well as the company,”
Car leasing model and self-driving car rental are a booming business, and this can be the future of the automobile sector in India.
While Hyundai has already invested an undisclosed sum in Revv, which is a car on rent, and self-drove car rent options, Mahindra has invested Rs 176 crore in Zoomcar, which was the first company in India to provide self-driven car rentals.
We will keep you updated, as more details come in.
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