Car subscriptions started making headlines in 2017 and by Q2-2018 end gathered full momentum. As of Nov 2019, 20 OEMs are offering  or about to offer vehicles by subscription around the world.

With the rise of Mobility-as-a-service, auto manufacturers are now increasingly trying car subscription services in small volumes to test consumer adoption in various regions.

Before, we discuss about the car subscription market, lets discuss what could be the potential reason for OEMs to get into or not get into this business model.




  1. Premium brands (Ex Porsche, Cadillac, Audi etc) can get a new set of young customers, who were otherwise intimidated by high sticker price and who would have probably bought a vehicle of that segment later in their life.
  2. Customers can switch models within the same brand after their subscription period is over



  1. The pilot initiatives are limited to certain regions and a handful of countries only. The small sample size may not give true picture of consumer adoption worldwide
  2. Most of the car subscriptions are expensive (2X-3X of monthly lease amount for same car)



Getting a vehicle via subscription is more about convenience (reserved through app), flexibility (multiple short-term plans) that comes with low financial liability.




Vehicle subscription market segmentation





1PolestarPolestar space
(low cost, high tech retail outlet)
US and Canada
2PorscheClutch TechnologiesUS and Canada(Upcoming)
3AudiGroup 1 Automotive, SixtUS and Europe
4CadillacSelect dealersUS, Switzerland(upcoming) and Germany(upcoming))
5VolvoSelect dealersUS and UK
6BMW and MiniDrover (UK)US, UK and Singapore
7Mercedes BenzSelect dealersUS
8Hyundai, GenesisRevv(India), Select dealersUS, South Korea and India
9VolkswagenZoomcar,Drover(UK)India and UK
11Mahindra & MahindraZoomcarIndia
12MG Motors (SAIC)MylesIndia
14Jaguar Land RoverInmotion VenturesUK
15LexusSelect dealersUS
17Ford & LincolnCanvasUS
18JeepSelect dealersUS
19PSAWagonex,Hellocars and DroverUK,Australia
20Kia MotorsSelect dealers HellocarsSouth Korea, Australia





As of Nov 2019, US, UK, Australia and India appear to be the focal points of car subscription.

Among the four countries mentioned above, India’s inclusion would surprise all Industry stakeholders because India`s car ownership is amongst world`s lowest at ~22 cars per 1,000 inhabitants. But India is also a very young country and very high traffic congestion in all 8 tier-1 cities in India has made car ownership a liability who just want to get from point A to point B without associated driver fatigue.

In US, 80-85% of vehicles are either bought on finance/lease, which typically includes an average down payment of $3,000-$5,000 and a monthly payment of $400-$700.This might seem ok to people from earlier generation where car ownership was the only option but the millennials , many of whom are burdened with student loans find it a strain on their finances and thus could prefer the subscription model.


The future of car subscription market will also be impacted by the arrival of L3/L4 automated vehicles, consumers who need this kind of service, are typically not very keen on driving themselves and want maximum convenience with low financial liability.



UK based Drover and India based Zoomcar have partnered with multiple OEMs for subscription services. Hyundai has made almost its entire lineup available in India through its partner(Revv).

Going forward, we believe there is scope for tech companies like Drover, Zoom car to scale the vehicle subscription services to many more cities. Although, there will be push back from dealer bodies but many of them just don’t have the required infrastructure to support a revolutionary business model like this.



  1. Clutch Technologies LLC
  2. Zoom Car Pvt Limited
  3. FreshCar(Previously Carma Car)
  4. Enterprise Rent-A-Car
  5. LMP Subscriptions
  6. Revv(Prime mover Mobility Technologies Pvt Ltd)
  7. Canvas(A subsidiary of Ford Motor Credit Company)
  8. Drover Limited
  9. Hellocars(Innovate Automotive Pty Ltd)
  10. Wagonex Ltd
  11. Inmotion Ventures Ltd
  12. Hertz Corporation




  1. Can vehicle subscription be rolled out by car manufacturers on a global scale? If yes then which segments and regions will be the top choices?
  2. Which price point and vehicle segment offers good value to vehicle subscribers?
  3. Who are the leading players so far, key differentiation in their business model?
  4. Is there a possibility to offer expensive electric vehicles via subscription? If yes, then in which region?
  5. What is the estimated car subscription market size and forecast for 2019-2025?
  6. Who are the consumers of vehicle subscription? How do they differ based on region? What are their other mobility requirements
  7. What are the major paint points of vehicle subscribers, globally and how it can be addressed by subscription providers?
  8. Role of tech companies in roll out of subscription model, how will the role of dealers change and are they ready to accept the change in consumer behaviour?

1             Market Segmentation

2             Executive Summary

3             Introduction

4             Monthly active car subscriber bases in in US, Europe, Australia, and India

5             Role of dealerships in the growth of car subscription market, by region

6             Role of car rental companies in the growth of car subscription market, by region

7             Most popular subscribed car models in US, Europe, China, and India

8             Average car subscription period, by region

9             Profile of car subscribers, by region

10           Opportunity in premium and luxury car subscription, by region

11           Comparison of new car finance. lease, by region

12           Impact on used car market, by region

13           Risks in car subscription to OEMs and dealers, by region

14           Market Size, Dynamics, and Forecast by Geography

15           Market Size, Dynamics, and Forecast by Technology

16           Market Size, Dynamics, and Forecast by Price

17           Competitive Landscape

18           Market share of major vendors

19           All about start-ups active in car subscription market

20           OEM-vendor partnerships for car subscription, by region

21           Company Profiles

22           Unmet needs and Market Opportunity for new vendors

23           Conclusion

24           Appendix

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