Pumpumpum bets big on leased vehicles

Changing behaviour patterns and mobility preferences are giving vehicle leasing a greater thrust. Nilesh Wadhwa reports on how the company aims to reach out to new private and corporate customers and is targeting a 50 times expansion of its fleet in three years. In sync with the latest trends in the automotive world, the company is also keen about exploring options in the electric vehicle segment.

- Nilesh Wadhwa

Gurugram-based Pumpumpum, a platform for leasing vehicles plans is targeting 2,500 cars by the end of the current fiscal, and around 30,000 cars over the next three years. In fiscal 2022, the company was able to lease 500 cars.

While the concept of buying a vehicle on lease rather than owning it has yet to gather speed in India, a trio of factors is now opening up the market to players such as Pumpumpum. These factors include changing consumer behaviour, the rise of millennial and Gen Ys with disposable incomes and varied mobility preferences, and finally, the demand for mobility without the associated hassle of maintenance.

Tarun Lawadia, CEO and co-founder told Autocar Professional that “as a result of the pandemic, a lot of demand has come for vehicle subscription over the short-term.” In his view, as people were sceptical about using cabs for personal use, they want mobility solutions without having to actually own the vehicle.”

Lawadia said the company is clear about its target customers who are those wanting to drive a used car without owning it, for a short duration of between six and 24 months. Another growth factor for vehicle leasing is corporate business, which he says accounts for almost 70-75 percent of customers.

Sameer Kalra, who co-founded the company and is its COO says the share of leased vehicles in the entire automobile sector, at present, does not even account for one percent though "leasing as a product or subscription is designed to solve all your hassles around the experience of ownership."