Stuck in first gear: Car subscription services are not gaining momentum

[ad_1]

Automakers say the model will work in India because younger people tend to avoid purchasing big and costly goods, and prefer leasing instead.

Synopsis

​​Experts say a lease model is unlikely to bring in large volumes in the country where car ownership is considered a status symbol. India sells about Rs 2.2 lakh crore worth of passenger vehicles a year, says an analyst. The car subscription business is Rs 200-250 crore. In comparison, the ride-hailing market is Rs 20,000-25,000 crore.

Priya Shah, a 35-year-old techie based in Gurgaon, is confused these days. The metro had taken care of her office commute until now. The higher risk of getting coronavirus from a public place has now forced her to look at getting a car. But she is unsure if she should buy one or just rent one. There is also a car subscription service that gives her the option to switch vehicles if she does not like a model. It also covers expenses such as

  • GIFT ARTICLE
  • FONT SIZE
  • SAVE
  • COMMENT

To Read the Full Story, Become an ET Prime Member

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Access the exclusive Economic Times stories, Editorial and Expert opinion

Already a Member?

Why ?

  • Sharp Insight-rich, Indepth stories across 20+ sectors

  • Access the exclusive Economic Times stories, Editorial and Expert opinion

  • Clean experience with
    Minimal Ads

  • Comment & Engage with ET Prime community

  • Exclusive invites to Virtual Events with Industry Leaders

  • A trusted team of Journalists & Analysts who can best filter signal from noise



[ad_2]

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top