Toyota Motor will offer its cars in India on leases or shorter-term subscriptions, hoping to cover the growing demand for private transport as travelers avoid traveling in public transport due to coronavirus crisis.
The Japanese automaker stated on Tuesday it would provide leasing plans to corporate and retail consumers of three to five years throughout its portfolio of cars – including the Glanza hatchback, Yaris sedan, and Fortuner sport-utility vehicle – for as less as 21,000 rupees ($280) a month.
Naveen Soni, senior vice president, sales and service at the automaker’s India unit, said the requirement for safe transport is increasing, and leasing or subscription models offered a more cost-effective solution than purchasing a car.
So far, leasing and subscription services in India have mostly focussed on the higher end of the auto market and therefore comprise a fraction of the total numbers, said Soni.
“The lower end of the market is where the bulk is,” he said, adding that was where the automaker would also focus.
Toyota’s rivals in India, such as Maruti Suzuki and Hyundai Motor, have formed partnerships to provide similar services, as automakers look to increase revenues amid the pandemic.
Toyota’s India unit has created a separate team to drive the business and it will partner with its Japanese parent’s worldwide mobility services brand, KINTO, together with ALD Automotive and SMAS Auto Leasing.
