Mercedes-Benz to introduce self-leasing

Over the next two years, when Mercedes Benz launches four of its New Generation Compact Cars in the country - the B-class sports tourer, the A-class family compact, a Baby Sedan and a Baby SUV, all in the Rs 25-30 lakh segment - it will be looking at a younger segment of buyers. But it's not just about offering a car that will have features and innovative quirks younger owners might like. "Young users means a fast-changing cycle of cars, or newer ways of acquiring them," says Debashis Mitra, director, sales & marketing at Mercedes Benz India. Also Read: Mercedes-Benz introduces iSales for dealers

The company's answer to both is self-leasing, by which young consumers can rent a Mercedes for two or three years for Rs 1 lakh every month (this includes leasing, insurance, warranty and service fees). That way, they can still own a Mercedes-Benz and keep changing models when they want, says Mitra, adding that since globally, about 50% of people lease their luxury cars, why can't young, affluent, aspirational Indians do it too? The self lease option, which Mercedes-Benz already offers, has no down payment; simply a monthly rental. "This makes affordability come home," says Mitra, "and you can keep changing cars every few years since you never really own the vehicle."

Studies of the 2.4 million passenger car market in India, say luxury cars make for only 1 per cent today. But by 2020, when the passenger car market grows to an estimated 7-8 million, luxury cars will comprise 3-4 per cent of that. Young consumers, says Mitra, will account for a big part of this jump from an approximate 25,000 luxury cars today, to about 3 lakh in eight years from now. "The bigger chunk of this Indian luxury car market will come from young consumers," he adds.