Stuck in first gear: Car subscription services are not gaining momentum


Automakers say the model will work in India because younger people tend to avoid purchasing big and costly goods, and prefer leasing instead.

Synopsis

​​Experts say a lease model is unlikely to bring in large volumes in the country where car ownership is considered a status symbol. India sells about Rs 2.2 lakh crore worth of passenger vehicles a year, says an analyst. The car subscription business is Rs 200-250 crore. In comparison, the ride-hailing market is Rs 20,000-25,000 crore.

Priya Shah, a 35-year-old techie based in Gurgaon, is confused these days. The metro had taken care of her office commute until now. The higher risk of getting coronavirus from a public place has now forced her to look at getting a car. But she is unsure if she should buy one or just rent one. There is also a car subscription service that gives her the option to switch vehicles if she does not like a model. It also covers expenses such as

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