InvestorQ : How are companies like Maruti Suzuki, M&M and Tata Motors planning to push their car sales in this tough market?
Lavanya Subramanian made post

How are companies like Maruti Suzuki, M&M and Tata Motors planning to push their car sales in this tough market?

Answer
user profile image
ishika Banerjee answered.
4 months ago


Most automakers are going aggressively after the auto markets post the pandemic. One strategy that Maruti is considering is to give cars on leasing; something M&M, Tata Motors and Hyundai are already doing in India. Leasing will allow Maruti dealers at a time when domestic automobile sales are expected to slump. Such vehicle leasing services are popular in developed markets such as the US and Europe. It is expected that urban customers may prefer the vehicle leasing model, given declining affordability and lesser hassles. Unlike in a hire purchase transaction, in a lease the customer does not own the car but gets the depreciation benefit. Leasing used to be big business in the 1980s and 1990s but eventually petered out after RBI tightened regulations in 1999.