EV Automaker Partners With Zoomcar to Help Buyers Offset Loan Payments

Mahindra Electric teamed up with peer-to-peer car-rental company Zoomcar in India, in an effort to help consumers offset monthly loan payments on Mahindra’s e2oPlus all-electric cars.

Through the partnership, individuals can purchase the Mahindra e2oPlus on ZAP, Zoomcar’s car ownership program. ZAP allows consumers to then list the vehicle — whenever idle or available — to receive bookings from Zoomcar’s customer base and earn cash to help offset the monthly ownership costs, which include maintenance, insurance, and loan payments.

The car buyer can save as much as $233 per month by “sharing” the vehicle through Zoomcar’s service, according to a company press release. The program will be implemented in Bangalore; Delhi; and Pune, India, and will soon be launched in other cities.

It is unclear at this time if the captive finance arm of Mahindra Group — Mahindra & Mahindra Financial Services Ltd. — will fund the loans through Zoomcar’s platform. Mahindra did not respond for comment by press time.

With the rise of rideshare and the advent of the sharing economy, automakers are rethinking the concept of owners buying vehicles. Many OEMs are developing innovative models to alter the way consumers traditionally purchase or finance cars. Mahindra and Zoomcar’s new partnership is just one example.

One of the most innovative attempts in this space — in the U.S. — is General Motors Co.’s $1,500-per-month Book By Cadillac program and Cox Enterprises’ new Clutch program, which enables consumers to drive a vehicle without restrictions and then swap it out at anytime. Clutch offers two plans: one for $1,400 per month with luxury vehicles, and one for $950 per month with access to lower cost vehicles. Both Clutch plans include a one-time entry fee of $250.

Additionally, Volvo-owned Geely Lynk & Co. offers the vehicle model 01 SUV at various pricing, including the ability to subscribe for it, buy it, or lease it.

In September 2016, Mumbai, India-based Mahindra Electric adopted a “more aggressive stance” in electric mobility, according to the release. The company underwent a change in branding — it was formerly known as Mahindra Electric Mobility Ltd.

Under the new brand name, Mahindra Electric will manufacture electric cars, electrify its new and existing platforms, license out its electric vehicle technologies, and help deliver integrated zero-emissions mobility solutions, the company said in a statement.