InvestorQ : What does it mean that Tata Motors has launched electric vehicles on subscription models?
indhumathi Sayani made post

What does it mean that Tata Motors has launched electric vehicles on subscription models?

Answer
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shrinidhi Rajan answered.
1 month ago


Tata Motors launched a subscription model for the sales of the electric version of its compact SUV Nexon. This is a unique sales channel designed to make electric vehicles or EVs accessible to a huge base of largely upwardly mobile and young buyers. The subscription model presupposes an all-inclusive fixed rental structure that starts at Rs.41,900 per month.

Customers will have the choice of tenure of subscription and they can opt for a minimum period option of either 18 months, 24 months or 36 months. The rentals or subscriptions charges payable on a monthly basis will be Rs.47,900 for 18 months subscription, Rs.44,900 for a 24 months subscription and Rs.41,900 for a 36 months subscription.

This special set of schemes is designed to make the EVs popular and to make it easier to own these assets. Tata Motors is already betting on EVs as the future of Indian transport and expect it to become the fastest growing segment in the auto industry. This subscription model will make it more convenient for users interested in EVs.

With most people using cars for just about 3 years, the preference is more for user-ship over ownership, in an economy that is quickly transforming into a shared economy. This model of selling is specifically customised to corporates that prefer to lease than buy, individuals have transferrable jobs and expat workers who are here for brief periods.