New Delhi: India’s largest car maker Maruti Suzuki India Limited (MSIL) is reportedly considering to lease out vehicles to its retail customers through dealership networks in the country.
As per a media report, the plan has been in the works for about a year and is being spearheaded by a special projects team of the company.
This move will bring hopes for Maruti Suzuki dealers at a time when the industry has been under constant stress due to the declining domestic sales and the coronavirus induced economic crisis.
“The situation might be conducive for Maruti to launch such services since urban customers are likely to prefer the vehicle leasing model, given declining affordability and less hassle of leased vehicles”, quoted the media report, citing an unknown source.
The development brings an alternative option for demand revival of buying cars in the urban markets.
Even though the vehicle leasing strategy has been popular in the developed markets like US and Europe, it is not new to India too.
Maruti Suzuki had earlier ventured into the vehicle leasing space for corporates. However, it did not see any major success.
Meanwhile, Hyundai Motor India Ltd and Mahindra and Mahindra Ltd (M&M) already offer their vehicles on lease. In 2018, Hyundai also made an undisclosed investment in Revv, while Mumbai-based M&M invested around ₹176 crore in Zoomcar.
Others like Mercedes-Benz India and BMW India also have their own customised leasing options for their customers.
Volkswagen India too introduced a leasing and financing option on Wednesday.