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M&M enters vehicle leasing business via tie-up with Orix, ALD Automotive

A leased vehicle will be available for up to five years, depending on city and model

Shally Seth Mohile  |  Mumbai 

Mahindra TUV300 Plus
Mahindra TUV300 Plus

In a first for a passenger vehicle makers in the mass segment, (M&M) on Wednesday introduced leasing for retail buyers.

It has partnered with and ALD Automotive, globally known leasing service A leased vehicle will be available for up to five years, depending on city and model.

India has been offering leasing schemes to retail buyers for some years but no company in the mass car segment has till now.

Depending on choice of model, a lessee is to pay a rental that starts from Rs 13,499 a month (KUV 100NX), going up to Rs 32,999 a month (XUV 500). The benefit to a customer, said, included lower or no down payment, zero risk on resale value of the vehicle and a fixed equated monthy instalment, inclusive of maintenance cost. A lessee will also be allowed to upgrade the model. Once the lease scheme is over, the vehicle may be retuned to the company, without the hassle of resale, and get a new vehicle. The lease offer will include services such as insurance, end-to-end maintenance, on-road assistance, accident repair and 24-hour replacement vehicle.

The offer will be at six cities — Pune, Ahmedabad, Bengaluru, Hyderabad, Mumbai and Delhi — in the first phase. In the next phase, this will be extended to 19 more cities.

V S Parthasarathy, group CFO at M&M, said: “Our model is a category-creating product offering, a no-worry experience for customers who prefer convenience over ownership.”

Through leasing, expects incremental sales of five to seven per cent in overall passenger vehicle volumes, said Veejay Ram Nakra, chief of sales and marketing at the automotive division.

First Published: Wed, October 10 2018. 22:58 IST
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