Now driving a Range Rover can be like subscribing to Netflix. Here's how

Jaguar Land Rover has said that it expects subscription services to account for almost 10% of all car sales in the US and Europe by 2025.
By : Bloomberg
| Updated on: 02 Jul 2020, 01:16 PM
File photo of Range Rover Evoque.
File photo of Range Rover Evoque.
File photo of Range Rover Evoque.
File photo of Range Rover Evoque.

A startup backed by Jaguar Land Rover is introducing a vehicle-subscription program to attract affluent millennials who don’t want to buy or lease a car.

Pivotal, supported by JLR’s InMotion venture-capital unit, will offer a six-month subscription for drivers in mainland UK starting at 750 pounds ($934) a month for a Land Rover Discovery Sport or Range Rover Evoque, according to the company’s website. The top-of-the-line Range Rover will cost 1,600 pounds a month. The payment will cover tax, maintenance and insurance, and customers can cancel their subscriptions after three months, Pivotal said.

Other companies have announced similar programs: Volvo Car AB is introducing a subscription service, Care by Volvo, in September. London-based startup Drover Ltd. has partnered with BMW AG to offer an alternative to car ownership. And in the US, Volkswagen AG’s Audi unit offers subscriptions for its cars, starting at $1,495 a month.

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(Also read: Tesla's self-driving may be like Netflix subscription service. Here's the cost)

Daimler AG’s Mercedes-Benz brand introduced a US subscription service in 2018, but pulled the plug on the two-year-old pilot, Automotive News reported last month.

With new car sales plunging amid the coronavirus pandemic and people reluctant to return to public transportation, carmakers are looking for ways to spur demand. Jaguar Land Rover, owned by Tata Motors Ltd., said in a statement that it expects subscription services to account for almost 10% of all car sales in the US and Europe by 2025.

First Published Date: 02 Jul 2020, 01:16 PM IST
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