Indian online car rental company, Revv, says it will now let users keep a car for up to 4 years for a monthly subscription fee

(Photo Source: justdial.com)

• Hyundai-backed car rental start-up, Revv, is expanding its operations in India with its service, ‘OPEN’ that will provide a range of cars on a monthly ‘subscription fee.’
  
• The service will let users lease a car for a minimum of 12 months to a maximum of 48 months, depending on the rental plan.
  
• The company plans to launch the service in nine Indian metros in the coming week.

It appears that online subscription-based economy may revive the car leasing market in India.

For a monthly ‘subscription fee,’ Indian car rental company, Revv, says will let users keep a brand new car for up to four years. Revv, backed by Hyundai Motors, will reportedly provide a range of 25 car models including Honda City, Hyundai Creta and Maruti Suzuki Alto.

The company claims it will deliver a brand new car to its customers, taking away the hassle of vehicle registration and maintenance. However, users will have to keep the car for a lock-in period of 12 months and can stretch the services up to 48 months, with an option to buy the car at any time during the rental.

Revv is planning to launch the service in nine Indian metro cities in the coming week including Delhi NCR, Bangalore, Hyderabad, Mumbai, Pune and Kolkata.

Rent or buy?

Revv claims that its monthly subscription fees will be more ‘affordable’ than the monthly EMIs of traditional car loans for a period of 48 months. Since cars depreciate over time, leasing may be an attractive option as users will have to pay only for the duration of its use.

According to Revv’s website, users will need to pay insurance for the first year, which is typically 20% of the car purchase price.

In India, while commercial leasing of cars is quite common, the car leasing market for individual use has been fairly limited. Car rental industry is growing rapidly in India with players such as Zoom Car, Myles and Drivezy.

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