Hyundai, India’s second-largest manufacturer is offering cars on lease. The South Korean automobile giant announced the partnership with Revv and all the cars of Hyundai India’s fleet are available for subscription. The new model will allow customers to enjoy the ownership of the vehicle without worrying about the service costs. At the moment, Hyundai will offer the subscription services as a pilot project in major cities only. Six cities that will offer the services are Delhi NCR, Mumbai, Kolkata, Pune, Bangalore and Hyderabad.
The new service will allow the customers to choose from a minimum of 12 months and a maximum of 48 months of subscription. Right after 12 months of subscription, customers will be eligible to buy the vehicle. However, after 48 months of availing the subscription services, customers will have to either get a new lease or buy the vehicle. Customers who are opting for one-year or more subscription will definitely get a brand new car as per Hyundai.
Mr S JHa, Senior Director, Sales & Marketing, Hyundai Motor India Ltd, said
We are extremely excited about the Indian mobility landscape currently and foresee great prospects. This strategic alliance will provide a unique opportunity for today’s millennial customers to experience Hyundai’s diverse product offerings that blend with their personality. With our deep understanding of Indian consumers and progressive tech-driven mobility solutions, we aim to forge a new market for the New Age Indians.
According to Hyundai, customers will have to pay zero down payment for getting a new subscription. However, the first year insurance of the car will have to be paid by the customer. Even the insurance in the later years will have to borne by the customers. It should also be noted that the vehicles will carry commercial number plate and not the white private number plates. This will affect when the customer crosses the state borders. Every commercial vehicle has to pay the state tax on entry and that will have to be paid by customers too. However, it is not known if Hyundai or Revv will provide pre-paid tax with the vehicle for neighbouring states.
Hyundai has not officially announced the price for the subscriptions but according to the details for new car lease of Revv’s official website, for a Hyundai Santro Magna variant, a customer will have to pay Rs. 15,790 for the first twelve months. From the 13th to 48 months, the monthly subscription price will come down to Rs. 13.390/month. The total ownership cost for the whole 48 months comes out to be around Rs. 6.73 lakhs. The approximate price of the new Hyundai Santro on road in Delhi is around Rs. 5.13 lakh. The on-road price includes insurance and road tax charges. Apart from this, the customer will have pay scheduled maintenance charges that include servicing.
Similarly, the Hyundai Elite i20, which is quite popular in the market is also available on subscription. The Sportz manual petrol version is available for Rs. 22,690 per month for first 12 months and Rs. 16,690 for next months till the competition of the 48 months. Plus, there is an insurance premium fo Rs. 37,928 that has to be paid for the first month. The same variant of the Elite i120 in Delhi is available for Rs. 8.2 lakhs, on-road, Delhi. In comparison, the 48-month subscription will cost you Rs. 8.73 lakh.
The Hyundai Creta, which is the best-selling vehicle in the segment available for Rs. 11.64 lakh, on-road. This is the price of the E Plus 1.4 diesel engine version. The subscription charges are quite steep. According to the Revv website, for the first 12 months, the customer will have to pay Rs. 29,790 per month for first 12 months and Rs. 24,590 post that till 48 months. There is an additional insurance cost that will set back the customer by Rs. 56,994 for the first year. The total subscription cost without the insurance comes out to be Rs. 12.43 lakh.