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Personal mobility: Car subscription models gaining popularity, says survey report
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The trend of car subscription models for commuting is gaining traction, as consumers find it as relatively inexpensive way for personal mobility, said a survey report.
According to Grant Thornton Bharat Auto Survey, among respondents, 56 per cent said they would opt for a vehicle subscription model, as it saves them money".
These models allow consumers to get a vehicle by paying a fixed amount every month without having to pay down payments or monthly EMIs, maintenance cost of the car, or insurance.
Besides, the findings from the survey include consumer preference for vehicle subscription from both OEM and leasing companies.
Similarly, the survey results revealed a shift from car-sharing services to personal mobility as 50 per cent of respondents showed their willingness to buy a new vehicle.
Furthermore, the survey report showed that around six in ten car buyers still wait for discounts before making a vehicle purchase.
According to the report, at least half of survey potential car buyers agreed that they may be willing to exceed their budget if they get heavy discounts on high-end models.
Additionally, it cited festive discounts as the key determinants of vehicle sales performance in India.
"Even though most consumers may delay their purchase until next year, lucrative discounts and deals may inspire them to buy vehicles this year," said Saket Mehra, Partner and Auto Sector Leader, Grant Thornton Bharat.
"Given the value-focused Indian consumer, OEMs and dealers may offer discounts on value added services such as extended warranty and add-on's but may remain reluctant in offering full-fledged discounts for their flagship models."
As per the survey, among passenger vehicles, the trend of utility vehicle (UV) preference over sedans persists this year as 51 per cent respondents expect to buy the former.
In addition, the survey pointed out a boost in adoption of electric vehicles with around 21 per cent of respondents indicated their willingness to buy EVs and at the same time 24 per cent said they would prefer buying a hybrid vehicle.
"From EVs and alternative fuel options, Indian consumers now seem ready to embrace the paradigm shift to e-mobility. They are overcoming their hesitation and prefer sustainable and environment-friendly solutions," Mehra said.
