Mahindra & Mahindra Ltd. on Thursday launched a subscription plan where it will offer its cars and sports utility vehicles to buyers for a fee.
With the auto slowdown in India entering its 10th straight month in August, auto firms and retailers are struggling to clear inventory at plants and showrooms. Several lucrative offers have been introduced to woo buyers to little effect.
"We are introducing an all-new subscription model for retail customers of our personal vehicles. With this flexible, affordable offering, we hope to help our customers fulfill their aspiration of driving their desired vehicles without necessarily owning them," said Veejay Ram Nakra, chief of sales and marketing at Mahindra & Mahindra.
The Mahindra car subscription plan, priced at Rs 19,720/month onwards, will see models like the KUV 100, XUV 500, XUV 300, Scorpio, TUV 300, Marazzo and Alturas G4 offered to consumers for a period of 1-4 years in case of a new car.
The scheme comes with offers such as zero down payment, no road tax, zero risks on the resale value of the vehicle, and a fixed amount that includes routine maintenance costs, the company said in the release. The subscriber also has the flexibility to switch models after a certain minimum subscription period.
The subscription plan has initially been launched for customers in Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad, Kolkata, Chandigarh and Ahmedabad.
On Thursday, Mahindra & Mahindra shares fell 0.69 percent to Rs 541.80 apiece on the BSE while the benchmark Sensex shed 0.45 percent to end the day at 37,104.28 points.
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