One of the latest trends in the Indian automotive industry that has taken car ownership by storm is car subscription. Over the past few years, especially after 2020, the vehicle subscription market has been consistently on the rise. It has also brought about a significant paradigm shift in the car buyer’s behaviour pattern, which has had a tremendous ripple effect on the entire automobile market.
Before we delve deeper into the subscription market trend and forecast, let us first understand what a car subscription service is.
What is a car subscription service?
The car subscription services are a new mode of car ownership that allows you to subscribe to any vehicle of your choice from the subscription company without actually owning the car and paying a hefty amount for it. When subscribing to a new car, you only have to pay the monthly fees.
The fees you pay greatly depend on the car’s make and model and the period for which you take the subscription. Once the car subscription service fixes the fees, it remains the same throughout the subscription tenure. Taking a car subscription has many benefits; you need not worry about the rising insurance premium, EMIs, down payment or maintenance cost, the car owner or the car subscription service will take care of all these expenses.
As per the industry data, over the years, many people in India are slowly moving towards the car subscription model, and car purchase has declined steadily.
Vehicle subscription market trend and forecast
According to industry reports, the vehicle subscription market is expected to grow at a compounded annual growth rate of 14.2% between 2021 and 2025 and beyond. The market value of the subscription market is expected to be about USD 12.5 million by 2028.
Many experts believe that the car subscription market has a vast potential to grow because of the increasing popularity of the vehicle subscription business model worldwide. Additionally, the growing number of car subscription service providers has spurred the demand for car leasing.
The vehicle subscription market forecast for 2025 also suggests that the high disposable income among people in developing countries and the upsurge in technological expertise are going to play a vital role in the vehicle subscription market growth. Rapid urbanisation and an increase in population are also expected to boost the car subscription industry.
Why is car subscription the new favourite among the modern generation?
The car subscription business is preferred mainly by modern youngsters more than the older generation as they are looking for newer ways to own a car without having to take a loan. They are also not very keen on investing a significant amount in buying an asset like a car, which depreciates every year, and its value reduces over time.
With the changing mindset of modern-day customers and the growing popularity of new car subscription services, many automakers are now willing to explore the car subscription business model to reach out to more customers.
As a potential car owner, you can subscribe to a car from Quiklyz rather than purchasing a new car and enjoy the freedom to experiment with different car models before eventually discovering the best car you want to ride every day. Besides, car subscription services like Quiklyz offer many value-added services like the freedom to purchase a car if you like it and find it hard to part ways with it or upgrade to another one.
Thus, in a nutshell, a car subscription will grow manifold in the future, and it will be the go-to method among youngsters for driving their new car.