Amidst plans of investing a significant sum in Ola, Hyundai Motor India announced the launch of a subscription programme called ‘Hyundai Subscription’ on Friday.
This initiative of Hyundai shall be in partnership with Revv which is a self-drive car-sharing company. With this exclusive foray, Hyundai is entering shared mobility space for the first time in the country.
Using the service, users can use Hyundai’s make cars and SUVs without actual ownership. It requires limited commitment through subscription-based ownership model and allows swap across the company’s portfolio.
Six months ago, the South Korean automobile manufacturer had led $14.3 million round in Revv. According to the company, the pilot project will begin in Q1 2019 across six cities – Delhi NCR, Mumbai, Kolkata, Pune, Bengaluru and Hyderabad.
Hyundai’s investments in India’s car-sharing platform follows similar investments made earlier during the year by Ford as well as Mahindra & Mahindra in Zoomcar.
The development comes at a time when the company is about to invest up to $300 million round in Ola to push its electric cars/SUVs. In September it invested $250 million SEA ride-hailing major Grab.
Entrackr had exclusively reported about Hyundai’s proposed strategic investment in Ola.
Hyundai Motor, which is the only automotive company among Revv’s investors, will explore ways to support Revv’s car-sharing service, including the supply of car-sharing products, the development of new mobility service platforms and product marketing.
‘Hyundai Subscription’ will provide the customers to opt for flexible ownership plan that includes a subscription for short term/long term, swap across Hyundai range and avail without any down payment, insurance for short subscription, including an assured-on demand delivery.
Of late, the shared mobility space has seen a flurry of activity. It has grown rapidly from $900 million in 2016 to $1.5 billion in 2018 and it is projected to touch $2 billion by 2020.
India’s 15,000 car-sharing vehicles are expected to grow to 50,000 by 2020 and 150,000 by 2022. Significantly, the model has found favour with the millennials, who comprise 35 per cent of the total population of India.
Source: Financial Express