Mahindra has come up with an innovative concept to retail its SUVs. The company today announced to lease out the entry level KUV 1OO NXT and the flagship XUV 5OO at a monthly rent of ₹ 13,499 and ₹ 32,999, respectively. The lease offering will include road tax, insurance breakdown assistance, accidental repairs and maintenance cost. The lease also offers the flexibility of upgrading the product without the need of reselling it. Moreover, leasing these SUVs will not require any down payment and customers will also have the flexibility of upgrading the models once the period of their lease is over.
In the first phase of the launch Mahindra will be rolling out this service in six cities which are Pune, Ahmedabad, Bangalore, Hyderabad, Mumbai and New Delhi. In the second phase, Mahindra will expand this lease service to 19 more cities across India. The UV maker will also offer a wide portfolio of vehicles on this platform in the second phase. Other than the KUV1OONXT and XUV5OO, three more models which are TUV3OO, Scorpio and the recently launched Marazzo will be leased out through this platform. The vehicles can be taken on lease for a maximum period of up to 5 years depending on the model and city.
Also Read: Mahindra Marazzo First Drive Review
Speaking on the launch of this new service, V S Parthasarathy, Group CFO and Group CIO, Mahindra & Mahindra said, "Our Leasing model is a category creating product offering, a 'no-worry' experience for customers who prefer convenience over ownership. It aims to bring a new class of customers, including professionals, small businessmen and millennials, into the M&M car experience - who were waiting on the side-lines. Going forward, I am confident that leasing will gain more currency and the penetration levels will move in line with global trends".
On the same development, Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, Mahindra & Mahindra added, "Our lease offering for retail buyers aligns with our larger vision of transforming the face of mobility in India, disruption being at the very core. With this offering, we hope to help our customers fulfil their aspiration of driving their desired vehicles without necessarily owning them, thereby elevating customer engagement experience to the next level".
The company has joined hands with Orix and ALD Automotive for rendering this service. Orix and ALD Automotive have operations across the globe and are one of the leading companies in vehicle leasing.