Toyota Kirloskar Motor launches car leasing and subscription services
Bengaluru, August 18, 2020
Automobile manufacturer Toyota Kirloskar Motor (TKM) today announced the launch of a car leasing and subscription programme in India through a new vertical, Toyota’s Mobility Service (TMS) that will spearhead TKM’s future mobility initiatives in India.
Initially, Toyota’s Mobility Service will provide leasing and subscription to customers in Delhi-National Capital Region (NCR), Bengaluru and Mumbai and gradually expand it to ten more cities within the first year, a press release from the company said.
To start with, TKM will partner with existing Brand “Kinto” under Toyota Financial Services, ALD Automotive India and SMAS Auto Leasing India Pvt Ltd.
Under this new initiative, customers can pick cars of their choice for a tenure of three to five years on a fixed monthly fee on lease. The monthly fee will be inclusive of vehicle maintenance, insurance and roadside assistance.
For subscription, customers will have the flexibility to opt for short-term usage of 24 months to 48 months.
Car leasing and subscription gives the convenience of ownership with added flexibilities. It also allows the customer to choose from a variety of products that TKM offers in India, including the Glanza, Yaris, Innova Crysta, Fortuner and the soon to be launched, Urban Cruiser.
Naveen Soni, Senior Vice-President, Sales and Service, TKM, said, “The automotive industry globally is experiencing a ‘once-in-a-century’ profound transformation and it is imperative that we, as automobile manufacturers, transform ourselves from a traditional car company to a mobility company. Be it product or services, as a customer-centric company, it has always been our endeavour to introduce products and services in line with the evolving customer needs.
"The role of Toyota’s Mobility Service is aimed at providing one such solution catering to emerging mobility needs of the customers. Both leasing and subscription are expected to grow significantly in the coming years. In time, we want to provide all possible models of mobility service by working closely with our corporate, fleet customers and subscribers to understand their needs and offer customized and futuristic solutions such as Mobility-as-a-Service and connected cars.
"However, there is a need to create more awareness among customers as they may not be cognizant of the many benefits. For instance, customers may not be aware that they can lease new vehicles as per their preferences – models, variants, maintenance packages. Further, the main advantage of corporate leasing is that it enables tax merit for corporate employees," he said.
"We would like to follow the changing customer behaviour in the country wherein customers prefer ‘using a car’ rather than ‘owning a car’ due to the prevailing circumstances. Globally too, there is a growing trend wherein leasing and subscription business has matured and is seen as the stepping-stone for the introduction of futuristic mobility solutions," he added.
Kinto is the global brand for mobility services of Toyota. It was launched in India in 2019 as Full Service Leasing for corporate customers provided by Toyota Financial Services India Ltd (TFSIN).
TFSIN, is the Indian subsidiary of Toyota Financial Services Corporation (TFSC) which is a wholly owned subsidiary of Toyota Motor Corporation (TMC), Japan.
With a fleet of about 15,000 vehicles, ALD Automotive India is one of the leading vehicle leasing and fleet management companies in the country. Established in 2005, the Mumbai-headquartered company is the operational leasing and fleet management business line of the Société Générale Group.