Most customers are unaware of vehicle subscription model, finds Car Dekho survey
Premium- The survey also found that people who are aware of vehicle leasing services found the charges too high compared with owning or purchasing a car
NEW DELHI : New Delhi: Although many automakers have offered the service, passenger vehicle leasing in India is growing at a subdued pace as customers across age groups are not aware of the service, and the ones that are aware find the charges too high compared with owning or purchasing a car, a survey conducted by Car Dekho, a digital platform for sales of used vehicles, has found.
Close to 70% respondents in the survey were unaware of car subscription service offered by brands such as Maruti Suzuki India, Hyundai Motor India, Mahindra and Mahindra, Toyota Motor India, ZoomCars, Revv, Myles,and others, said the company is a statement.
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It further added that 76 %of respondents in the 18-24 age group are not aware of such services, while 70% of those above 44 years denied any such knowledge. Nearly 66% of respondents in the age group of 25-45 years showed lack of awareness about car subscription services.
Vehicle manufacturers have been offering their products on a subscription mode to attract customers who don’t want to own a vehicle for the long term. Some of them have tie-ups with other startups to promote this business model.
“Another finding was that 61% of respondents across age groups prefer a mix of car finance and down payment while purchasing a car and, on average, 18% of respondents prefer to make full payment. The survey also reveals that there is a serious need for an awareness campaign by manufacturers about subscription services since over 15% of consumer showed a willingness to explore vehicle subscription services," said the company in the statement mentioned above.
Car Dekho conducted the survey among 501 respondents who were in-market with high intent of purchasing a car. The survey was conducted through telephonic interactions. Nearly 47% of the respondents were in the age group of 25-34, with 61% employed in the private sector.
After the unlocking of the economy began last May, sales of passenger vehicles recovered swiftly as customer preference shifted to personal mobility to avoid covid-19 infections. Most customers, though, preferred to buy vehicles rather than leasing them.
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3 min read . 01:07 PM IST“Among those who selected car subscription, 57% preferred zero downpayments as the key reason that could compel them to explore this option. 62% of the respondents believe the current vehicle subscription pricing model offered in the market is either too high or needs correction and 47% said 12 months would be the best lock-in tenure," it further added.
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