Luxury car maker Mercedes Benz has announced a new plan under which young buyers can rent a Mercedes car for 2 or 3 years for a monthly amount of one lakh rupees. The company is targeting the younger generation which likes to change four wheelers according to the latest trends prevailing in the market.
THE COMPANY'S self-leasing plan includes the cost of leasing, insurance, warranty and service fees under the monthly rental of one lakh rupees. As per the media reports, Mercedes-Benz is very hopeful about the success of its self-leasing initiative in the wake of growth in the luxury car segment in India, which is expected to see a jump of 3% by 2020 from 25,000 units today to 3 lakh units. The company says that younger generation will contribute the most in this growth.
However, the question still remains unanswered whether the younger generation will shell out one lakh rupees a month to only rent a luxury car for a period of 2-3 years? While the company sees the offer as appealing, however, auto expert Murad Ali Baig feels that the monthly rental is too high that may discourage people from going for it.
“It has to be very rich young person. Obviously not for everyone. (Rental of) one lakh rupees a month seems very high. If it is one lakh a year then it would be certainly a different story. But one lakh a month means 12 lakh a year. The EMI of buying a new Mercedes car in four years would be about the same. The plan does not seem attractive,” said Mr Baig.
Not only the analysts but also the target customers of Mercedes feel that the self-leasing is an expensive option. "It's still an expensive proposition for ambitious individuals of our age - only the industrialists or their kids may prefer this deal. It could be a good corporate deal though," Samarth Misra, an MBA graduate from Gurgaon said.