Industry Insights

Why India Could be Car Subscription's Next Big Frontier

May 23, 2023
8 min

As India's urban landscape expands, so does the demand for convenient and flexible mobility solutions. Car subscription holds the key to unlocking this untapped market potential.


Car subscription is a relatively new concept in India where customers pay a monthly fee to use a car for a fixed period. Imagine a future where car ownership is no longer a burden but a hassle-free experience. As India's urban landscape expands, so does the demand for convenient and flexible mobility solutions. Car subscription holds the key to unlocking this untapped market potential. With a vast population yearning for hassle-free transportation, offering a seamless car subscription service could be a game-changer.

In this blog, we will take a closer look at car susbcription in one of the fastest growing markets, India. Highlighting its major players, consumer behaviour, the factors that influence its growth and how the future looks like.  

Market Overview  

India's car subscription market is still in its nascent stage, but it is growing rapidly due to a burgeoning middle class, increasing urbanisation, and changing consumer preferences, Indians are embracing the flexibility, convenience, and cost-effectiveness of car subscription. As a result, numerous car subscription providers have emerged, offering a diverse range of vehicles and subscription plans tailored to meet the evolving needs of Indian customers. The rapid growth of the Indian market positions it as a frontrunner in the global car subscription landscape.

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The market is dominated by major players such as Zoomcar, Revv, Myles and Quiklyz. However, several new OEM players such as Hyundai Motor India and Maruti Suzuki have entered the market recently, intensifying competition.  

Factors Influencing Car Subscription in India  

There are several factors that will influence the potential growth of car subscription in India. One of the primary factors is the socio-economic environment. According to a report by the Boston Consulting Group, the middle class in India is expected to reach accounting for around 41% of the total population by 2025. This growing middle class is driving the demand for affordable and flexible mobility solutions, including car subscription. This surge in demand signifies the opportunity that exists in catering to the evolving needs of the middle-class population, who seek convenient and cost-effective mobility options. Additionally, according to NITI Ayog, the Indian government's initiatives to promote electric vehicles and even car-sharing services have created opportunities for car subscription products.

As the Maruti Suzuki Chairman R C Bhargava said, “I will not be surprised if inflation has an impact on buyers on margins who can just about afford to buy a car with their disposable income”.  

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Maruti Suzuki Chairman R C Bhargava

In 2023, peoples purchasing power is reduecd and so they have less disposable income, making individuals more likely to choose a car subscription over purchase . Cultural factors, urbanisation, and infrastructure development further influence the feasibility and popularity of car subscription services in the country.  

Consumer Behaviour

Consumer preferences and behaviour also play a crucial role in shaping the car subscription market in India. A recent survey by Capgemini Research Institute found that nearly 51% of Indian consumers are willing to lease or subscribe to a car for a shorter duration rather than owning one outright. This trend is likely to drive the growth of car subscription services in the coming years.

The popularity of apps like Zomato and Google Pay in India, known for their speed and convenience, reflects the changing consumer mindset. Indian consumers, seeking hassle-free and quick experiences, are now leaning towards a subscription model ecosystem.

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Zomato - The dominant food delivery service in India.

Car subscription services align with this trend, providing on-demand mobility without worrying about maintenance and long-term commitments. Just as these apps provide a quick solution for food or payment needs, car subscription allows consumers to access transportation services on-demand without the burdens of maintenance, insurance, and depreciation. It aligns with the changing lifestyle preferences of Indian consumers, who seek instant solutions and value convenience in their day-to-day activities.

Future of Car Subscription in India  

Car subscription has the potential to be a game-changer in India due to its affordability, flexibility, and convenience. With a large population and increasing urbanisation, there is a growing demand for flexible mobility solutions. Car subscription offers an attractive option for individuals who prefer not to bear the high costs and hassles associated with owning a vehicle outright, making it a viable alternative that could revolutionise the way people access personal transportation in India.  

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Myles Car Subscription India

The future of car subscription in India looks promising, with several opportunities for growth. The government's push for electric vehicles and car-sharing services is expected to create demand for car subscription services. Additionally, the increasing popularity of shared mobility and the changing consumer preferences towards flexible and affordable solutions will further drive the growth of car subscription in India.

The revenue potential is substantial, as car subscription providers can generate income from subscription fees, value-added services, and partnerships with automobile manufacturers and insurance companies. As the market expands and more players enter the space, the revenue potential for car subscription in India is expected to grow exponentially.  


In conclusion, car subscription is an innovative and cost-effective mobility solution that is gaining popularity in India. The market is still in its nascent stage, but it is growing rapidly, offering several opportunities for providers.

The future of car subscription in India looks propitious, but providers will need to overcome several challenges such as customer experience, lack of awareness, and outdated software, to ensure its growth. With the right car subscription business model and innovative solutions, car subscription providers can cater to the evolving needs of Indian consumers and make mobility accessible and affordable for everyone.

India's unique market conditions make it a favourable ground for the success of car subscription services. The large population, rising middle class, and increasing urbanisation create a significant demand for affordable and convenient mobility solutions. Additionally, India's tech-savvy population and the rapid penetration of smartphones offer a fitting environment for digital platforms and app-based services like car subscription. With the right strategies, partnerships, and adaptations to local market dynamics, car subscription providers have the opportunity to tap into India's vast potential and establish a strong foothold in the country's mobility landscape.

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Komal Mekala

Marketing Specialist


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