In the fast evolving auto industry, MG Motor India is the latest to offer an alternate ownership model. The OEM has joined hands with personal mobility platform Zoomcar, to offer its vehicles on a subscription-based ownership model.
Through this tie-up, MG Motor will leverage Zoomcar’s end-to-end technology solution for its vehicle subscription platform.
The move will enable the OEM to tap new customers in the subscription market with technology provided by Zoomcar. The mobility platform will manage the subscription program on behalf of MG. MG’s vehicles will be available in flexible 12-, 24-, or 36-month subscription program options.
“The subscription model will further make MG vehicles more accessible to all auto enthusiasts in India. We are confident that our partnership with Zoomcar will generate considerable thrust in the market.”, says Gaurav Gupta, chief commercial officer, MG Motor India.
The Zoomcar and MG Motor partnership will also provide 24x7 support to their subscribers regarding bookings and vehicle listings. The customer experience will focus on enabling state-of-the-art technology for customer support services including on-ground fleet management, logistics support, vehicle scheduling, and onboarding. MG Motor is Zoomcar’s first OEM partner for its software as a service (SaaS) platform Zoomcar Mobility Services (ZMS). In the coming months there will be more such partnerships, as the subscription model gains more takers.
OEMs like Hyundai and Mahindra & Mahindra, Volkswagen (with Zoomcar’s Zap) have launched subscription-based ownership earlier. Zoomcar’s own subscription business, Zap, launched in 2018, has seen over 25,000 customers so far. “We anticipate a significant increase in car subscriptions over the next several quarters, as consumers look to avoid public transport and ride-hailing services without the commitments of traditional car ownership. Car subscriptions will continue to evolve and grow into more flexible, comprehensive offerings in the future,” says Greg Moran, CEO and co-Founder Zoomcar. He expects ZMS to contribute about 25-30 percent of Zoomcar’s overall revenue within the next six months.
Zoomcar, which launched its car-sharing services in 2013 is a market leader in the self-drive rental car space with over 10,000 cars in its fleet. In 2018, Zoomcar introduced a ‘peer2peer’ based marketplace for cars with the launch of its shared subscription mobility model and currently claims market share of over 90 percent in this space.
With MG Motor India as the first partner, Zoomcar is set to announce a few more similar partnerships with OEMs in multiple segments. “We will also be announcing partnerships across multiple vehicle segments and signing on partners in the commercial vehicle segment,” says Moran. As vehicle OEMs look to position themselves more as mobility solution providers, more interesting business models and ownership options can be expected in the coming months, years.