Kia India has signed a Memorandum of Understanding (MoU) with Avis Leasing to strengthen its position in the country's expanding vehicle leasing and subscription market. This deal marks Kia's third major leasing partnership in India.
The collaboration introduces the Kia Lease Program, offering customers flexible alternatives to traditional vehicle ownership. Lease tenures range from 36 to 60 months, with various mileage options available and no initial down payment required.
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On the occasion, Mr. Atul Sood, Senior Vice President, Sales & Marketing, Kia India, said, "At Kia India, we recognize the Leasing and Subscription space emerging as an important growth driver in the Indian Auto industry."
"Our partnership with Avis Leasing reflects our efforts towards strengthening Kia Lease as a scalable platform that addresses evolving customer needs while creating incremental demand beyond traditional ownership. Through such collaborations, we aim to build a strong, sustainable mobility business aligned with our long-term growth strategy in India," he added.
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The program provides comprehensive services, including maintenance, insurance renewal, and resale coverage. At the end of the lease term, customers can return the vehicle or upgrade to a newer Kia model, ensuring maximum flexibility.
Industry analysts note that vehicle leasing in India has grown steadily, supported by favorable policies and increasing fleet requirements from corporates. Kia's partnerships expand access to models like the Seltos, Sonet, and Carens through leasing channels.
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The MoU with Avis Leasing builds on Kia's strategy to diversify revenue streams amid a competitive passenger vehicle market. Avis, a key player in India's leasing space, will integrate Kia models into its portfolio, enhancing options for business and individual lessees.
Kia India launched its leasing program in 2024 and has since partnered with Orix India and Ayvens India. The company operates a manufacturing facility in Anantapur, Andhra Pradesh, with an annual production capacity of 300,000 units. It maintains a network of 821 touchpoints across 369 cities nationwide.
Since starting operations, the Anantapur plant has dispatched nearly 1.5 million vehicles, comprising over 1.2 million domestic sales and more than 367,000 exports. Kia currently offers nine vehicle models in the Indian market.