For an all-inclusive monthly fee, you can now use a new Maruti car for 12-48 months.
It’s not every day that you come across a subscription service that’s not related to a streaming platform or an online newspaper. In a move that surprised quite a few, leading carmaker Maruti Suzuki has announced a subscription service for its Arena and Nexa models.
The service ‘Subscribe’ offers easy and flexible car ownership for individuals. The company’s press note says, “… use a new car without actually owning it and by paying an all-inclusive monthly fee that comprehensively covers complete maintenance, insurance and roadside assistance.”
To offer this service, Maruti Suzuki has teamed up with ORIX Auto Infrastructure Services India, a subsidiary of ORIX Corporation, Japan.
How does it work?
First, you need to choose a car. You can choose to subscribe to a new Swift, Dzire, Vitara Brezza and Ertiga from Maruti Suzuki Arena, and a new Baleno, Ciaz and XL6 from Nexa. Now, you need to choose a tenure. There are flexible options of 12, 18, 24, 30, 36, 42 or 48 months.
The all-inclusive monthly fee covers expenses like maintenance, zero depreciation insurance and 24x7 roadside assistance. After the completion of the subscription tenure, the customer can also opt to upgrade the car, or extend, or buy it at market price.
‘Subscribe’ also offers customers the freedom to choose between a white (registered in the customer’s name), or black (registered in ORIX’s name) plate.
Tenure options, however, change basis the plate colour. As per the company’s website, tenure options available in white plate are 24, 36 or 48 months. In black plate, the available tenure options are 12, 18, 24, 30, 36, 42 or 48 months.
Shashank Srivastava, executive director (marketing and sales), Maruti Suzuki India Limited, said, “The vehicle subscription market is new to India and as such offers a huge untapped potential. Globally, penetration of such leasing programme varies between five and 30 per cent. The comprehensive Maruti Suzuki ‘Subscribe’ initiative offers customers the multiple advantages and peace of mind from botheration of maintenance costs and insurance renewal.”
“The programme is especially focused to bring convenience to the individual customers. Besides flexibility of tenure, it offers nil down payment and includes registration costs, insurance and its renewal, as well as routine maintenance. Additionally, the roadside assistance service brings total peace of mind to the customers. Progressively, we aim to offer Maruti Suzuki ‘Subscribe’ in 40-60 cities in the next 2-3 years.”
At present, ‘Subscribe’ is only available in Delhi NCR (Noida, Ghaziabad, Faridabad and Gurugram), and Bengaluru.
It's interesting to note how this service will compete with the likes of (cab-hailing apps/companies) Uber and Ola as more people look towards owning a four-wheeler because of health and hygiene reasons.