Mahindra enters leasing business in India, starting at Rs. 13,499 per month for KUV100

Indian automobile major Mahindra and Mahindra has forayed into the leasing business for its retail buyers in India in partnership with with Orix and ALD Automotive. The company intends to expand the purchase options and make the ownership experience of these vehicles more affordable and convenient. To make the scheme more lucrative, the monthly lease rental starts at Rs. 13,499 per month for the KUV100NXT, which will be the entry-level model while there is also an option of the more premium Mahindra XUV500 at Rs. 32,999 per month. Mahindra will also be adding more vehicles such as the TUV300, Scorpio and the newly launched Marazzo.

Mahindra will be adding more vehicles such as the TUV300, Scorpio and the newly launched Marazzo in the second phase of the leasing program

The company mentions, "The benefits of leasing to the customers include total convenience, lower or no down payment, zero risk on resale value of the vehicle and a fixed EMI inclusive of maintenance cost. As a result, leasing is gaining increasing acceptance in the market and offers greater convenience compared to actually owning a car. It also makes the entry easier with no initial down payment. Customers also have the flexibility to upgrade their models. Once the lease scheme is over, the person can return the vehicle to the company without the hassle of reselling it, and get a new vehicle."

The leased vehicle will be available for period of up to 5 years depending on the city and model selected, states Mahindra and Mahindra

In its first phase, Mahindra has launched the scheme in Pune, Ahmedabad, Bangalore, Hyderabad, Mumbai and New Delhi. The leased vehicle will be available for period of up to 5 years depending on the city and model selected, mentions the company. The second phase will see the addition of the above mentioned vehicles along with extending the program to 19 more cities across India. The lease services will cover insurance, end to end maintenance, on road assistance, accidental repairs, 24 hours replacement vehicle, etc.

"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, commented V S Parthasarathy, Group CFO & Group CIO, Mahindra & Mahindra Ltd