In a statement, Japan’s Toyota Motor Corp stated, it will commence offering its cars in India on short term subscription and leases basis. The move is aimed at tapping burgeoning demand for private transport with travelers avoiding public, communal journeys as a means to mitigate the COVID-19 pandemic.
Toyota will offer leasing plans to corporate and retail customers for a period of three to five years, across its portfolio of cars, including Fortuner sport-utility vehicle, Glanza hatchback, and Yaris sedan for as little as $281 (21,000 rupees) a month.
“There is a growing need for safe transport and leasing or subscription models offered a more cost-effective solution than buying a car,” said Naveen Soni, senior vice president, sales and service at Toyota India.
Leasing and subscription services in India have so far focussed on the higher end segment of the auto market and therefore have made only a fraction of the overall numbers, said Soni.
“The lower end of the market is where the bulk is,” said Soni, adding that was where Toyota would strategically focus.
Toyota is not alone in the subscription and car leasing market in India, its peers, Maruti Suzuki and Hyundai Motor Co have also formed partnerships to offer similar services.
This is one of the ways, carmakers are looking to boost revenues midst the Wuhan Coronavirus pandemic.
Toyota’s India has formed a separate team to drive the business and it will partner with its Japanese parent’s global mobility services brand, KINTO, as well as ALD Automotive and SMAS Auto Leasing.