Till now you have either owned a car or hired one. Now, you are free to "subscribe" for a car — an offering that atleast four Indian automobile makers hope will help them survive the down turn.With rising fuel costs, interest rates as well as rapidly depreciating value the 'Subscription model’ by auto OEMs allows you to own a brand new vehicle at zero down payment but just a fixed monthly subscription fee and the fuel cost. Car companies take care of insurance, road tax, and maintenance.For the car company, not only is it a natural extension, it adds another revenue stream of mobility-as- a- service and opens up a whole new set of customers who get to experience the new set of offerings at a very early stage of their life and career. “It’s a soft leasing model, with easy exit options (compared to leasing)says Rajeev Chaba, MD of MG Motor India, which has a tie up with Miles.Amongst the early entrants were Hyundai, followed by VW, Nissan and MG Motors. Mahindra will launch soon with Revv and Maruti Suzuki and Tata Motors too are firming up plans.With the auto industry, there is a sense of despondency which is prevalent especially with plummeting sales as well as unsold inventory. This service comes as a breath of fresh air for the beleaguered auto industry which is going through one of its worst phases in over two decades. This new purchase option of subscription model for passenger vehicles which auto companies are embracing to not only uplift sales, but also to give a different experience to the discerning customer.New age car owners are looking for hassle-free access to ownership instead of wanting to deal with a higher cost of ownership that new cars bring. This model is becoming particularly popular with the millennials who prefer an asset light lifestyle, flexibility and affordability at the same time.The trend of subscription started off at a global level in 2014 and accounts for more than 30% of the personal car market in the United States. And it is surely catching on in India as well. Experts maintain that the subscription model would account for at least 10% of the market in the next two years and about 30-35% of the market share by the next five years. There is a long way to go, say manufacturers but they are all rapidly scaling up services across the country.The benefits of subscription to the customers include total convenience, zero down payment, no hefty road tax, zero risk on resale value of the vehicle and a fixed amount inclusive of maintenance cost. One has the flexibility to change the vehicle model whenever he/she wants and continue the same subscription across cities.Volkswagen India , will provide 200 Polos under the subscription model maintains that the subscription-based model is picking up in the industry for those seeking convenience, comfort and an asset-lite lifestyle. Says Steffen Knapp, director, Volkswagen Passenger Cars, “Today, millennials are frequently shifting jobs and are constantly looking for better opportunities whether in India or abroad. To facilitate ease of movement, a subscription-based model suits them with the trend moving from personal ownership to a user-ship model within this target group. However, India still comprises of nearly 75 - 80 per cent first time buyers. As, many Indian customers continue to value the feeling of ‘personal ownership’ and consider it as a matter of pride and personal growth in owning a vehicle”.Mahindra & Mahindra who have an active leasing model are looking at launching their customised subscription model with ReVV very shortly. Amit Sagar, Vice President – Sales, automotive division, M&M mentions. “This is in sync with automotive industry trends and will meet customer’s aspiration of driving their desired vehicles without necessarily owning it.”What is noteworthy says Sagar of M&M , is that customers can even subscribe for shorter periods with tenures as less as one month. It is an all new way of using a brand new vehicle, without buying or owning one. For the company this opens up a whole new set of customers who can also get a chance to experience the Mahindra brand and its new set of offerings at a very early stage of their life and career, says Sagar.Perhaps the company who has been the most aggressive in the new age subscription model is Hyundai. Unlike other OEMs who are offering some of their models, Hyundai is offering all its models in this service. Says Vikas Jain, head, sales, Hyundai motor India “Cities like Bangalore and Hyderabad are throwing up maximum volumes for subscription models with a clear trend of users between 31-35 years. The demand for hatchbacks like Santro is very high”. Hyundai launched its subscription through Revv in March this year. From 26 cars in March, it sold 203 cars in June and expects to cross 250 cars in July.Car companies expect the complete experience of choosing and owning a car to undergo a transformation. Leasing is only a financial solution which addresses a part of the ownership hassle i.e. no down-payment, whereas Nissan is bringing a complete ownership solution by allowing customers to subscribe to Kìcks model with a minimum lock in period.Sriram Padmanabhan, VP- Marketing, Nissan India mentions, "We expect the shift to happen over the next few years. There have been start-ups who have introduced the concept of alternate mobility solutions in the Indian market and are currently optimizing their business models. The change in behaviour, like any other industry, will be dependent on the customer value that each solution delivers. We’re confident that a combination of convenience, transparency and ability to choose between multiple options will appeal to the audience that we’re planning to reach out to”.The younger generation is more likely to be early adopters of this trend and as data suggests across different categories. Bangalore, Pune, Hyderabad in addition to Delhi-NCR and Mumbai will take the lead to change this behaviour. But surely, this concept is here to stay which will put a smile on the face of the auto industry at large.Greg Morgan, CEO and Founder of Zoomcar, one of the first companies to jump on to the subscription wagon with OEMs like VW says, “Besides getting the car on subscription, you get to offset the subscription fees by over 70% by sharing the car when you are not using it.”Surrogate ownership is what the co-founders of Revv call the subscription model. According to the co-founders Anupam Agarwal and Karan Jain , around 90% of the customers surveyed, would not buy a car if it wasn’t for the subscription model. Into the fourth month with Hyundai, we are growing at 30%, says the co-founders of ReVV.The analogy according the co-founders of Revv ,”renting a car is like borrowing a DVD for a day and subscription model is like subscribing to Netflix.” It’s a win-win for manufacturers, mobility partners, dealers and customers. While the OEMs have a deep understanding of consumer’s product preferences, dealers understand the local trends and customer needs to help optimize the solutions.The mobility partners bring technology know-how and an understanding of online consumer behaviour, says the Revv co-founders.