Carmakers eye subscription, leasing to offset dwindling dealership sales

These new business models have been driven by the changing dynamics of transportation and vehicle ownership

Car-makers, struggling with one of the longest slowdowns in decades, are driving an alternative revenue stream to counter falling sales from dealerships: Subscription, leasing and shared mobility solutions.

In 2018, Maruti Suzuki, the country’s largest car manufacturer, reported a 71 per cent growth in leasing, and Hyundai’s subscription business grew nearly six times since it launched in March 2019. Mahindra, Toyota and Skoda have also announced plans for a subscription-based ownership models. Japanese major Nissan is expected to launch Nissan Intelligent Ownership for its new model Kicks in the next few weeks. Volkswagen India’s first lot of Polo cars, of