Hyundai Motor India has today announced that it’s partnering with ALD Automotive India to venture into car-leasing in India. Hyundai plans to provide an attractive alternative to owning a car to salaried individuals, working professionals, small and medium enterprises, corporates and public sector through Hyundai Leasing. The service will first be available across Delhi NCR, Mumbai, Chennai, Hyderabad and Bangalore.
Hyundai Leasing will work similarly to online car subscription services like Zoomcar’s Zap Subscribe and Revv which offer users options to rent a car for a fixed monthly fee without having to worry about down payment and maintenance. The lease service from Hyundai will be available across the entire Hyundai product line-up at different monthly rentals.
How car leasing works
Leasing allows users to drive a car without actually paying a huge amount in the means of buying it. When you lease a car, you’re only needed to pay a monthly charge for as long as you keep the car. This charge will include the basic partial cost of the vehicle, insurance fees, maintenance cost and the applicable tax that need to be paid when buying an actual car.
Once a user completes their minimum lock-in period, they can either renew their subscription or acquire the car from the rental company which in this case is Hyundai. The final amount to be paid will vary between 35 to 50 percent of the original price of the car and will depend on how long the car had been used.
– No maintenance and insurance fees to be paid additionally.
– Drive as long as you want the car for and switch to a new car at the end of tenure.
– Move to another city without needing to transport the car.
– Since leased cars will come with commercial license plates, users will have to pay inter-state permit fees every time they leave their home state.
– Short tenure subscriptions are costlier.
– Insurance services will be limited.
As part of the benefits, Hyundai will be offering easy up-gradation, no maintenance/insurance hassles and no upfront costs when leasing a Hyundai car. The leased vehicle will be available for a minimum period of 2 years going up to 5 years depending on the city and model selected.
In contrast to Hyundai’s leasing program, Zap offers subscription tenures of 6, 12, 36 and 48 months after which you have the option of purchasing the selected car. Revv, on the other hand, offers an even shorter tenure period of 3 months. Both Zap and Revv offer monthly charges ranging from Rs 10,000 to Rs 45,000. Zap also additionally offers users to share and save which allows listing their car on Zoomcar platform to pay only a part of the subscription fees.
It remains to be seen how Hyundai will look into the pricing of its leased cars considering the competition is already present.
Speaking about the announcement, Hyundai Motor India Sales and Marketing Executive Director, S.J. Ha said “Indian automotive industry is at the cusp of transformation. As a smart mobility solutions provider, we at Hyundai understand the needs of our evolving customers and are committed to making ‘Shared Mobility’ accessible. The vehicle leasing business is rapidly picking pace in India and offers great prospects. We are extremely happy with our collaboration with ALD Automotive and together we will leverage our strengths to create Unique, Smart and Brilliant ownership experience for our customers”.
ALD Automotive India CEO, Suvajit Karmakar commented saying “We are extremely proud and excited to announce this partnership with Hyundai. I am confident that this association will make us explore newer product and service offerings and take Car Leasing to the next level in the Indian car market. This will further reinforce our position as a leader and we look forward to a mutually beneficial relationship with Hyundai”.