Even as there are only negative vibes coming from the automobile sector in the country, an announcement by Mahindra & Mahindra says that they have joined hands with Revv to offer subscription based car ownership. Revv has been active in the car-sharing business for over 4 years. Whether this will go towards lifting the sentiments in the industry may be a little early to tell.
In the subscription-based model, you pay a returnable deposit and drive home a car. You will then have to pay a monthly fee for using the vehicle which is all inclusive. This practically means, you are not making any upfront payment, no registration and insurance charges. You have no EMIs to worry about, except the payment to the facility provider (in this case Mahindra -Revv). There are no maintenance charges either since that too is absorbed within the fee. You have to pay the monthly fee in advance, at the beginning of each month.
In this arrangement, M&M has included the XUV300, Scorpio, XUV500, Marazzo, Alturas G4 and four other models from its stable. The cities to be covered are also limited to start with; Delhi-NCR, Mumbai, Pune, Bengaluru and four more. The operations will be expanded beyond these eight cities going forward.
There will be a minimum lock-in period of one year for the user under this subscription model. The company expects that the average ownership period of a model with a subscriber could be 3-4 years, though the system is flexible enough to permit the user to change the model and shift to a different plan. Only brand-new cars are being envisaged under this plan.
M&M already has a personal car leasing business and claims 2,500 cars have been subscribed during the last year.
Revv has been in this space too and apart from the tie-up with Mahindra now, it has an arrangement with Hyundai also.
The customer can select a range of Mahindra vehicles that are part of this subscripton offering here.