M&M in pact to sell cars to Ola

Mumbai, Sept.8: Mahindra & Mahindra (M&M) today joined hands with Ola in yet another instance of growing tieups between car companies and cab aggregators.

The agreement covers M&M and its group companies in finance and insurance as well as Mahindra First Choice, the used car division. The Mahindras will offer an integrated package to Ola drivers who buy their cars, covering purchase, finance and insurance.

The auto group is targeting sales of 40,000 units to Ola drivers over the next couple of years. It expects business worth Rs 2,600 crore from sales and financing of cars.

Ola drivers can avail themselves of a package which will include Mahindra cars at special prices, attractive financing with zero down payment, apart from subsidised insurance premiums and comprehensive maintenance packages.

Earlier this year, Anand Mahindra, chairman of the Mahindra group, had expressed concern over the growth of cab aggregators as he felt this would lead to lower car ownerships. Mahindra clarified today that he meant going forward both would have to work together to create a shared ecosystem.

Responding to queries, Ola co-founder and chief executive Bhavish Aggarwal said the alliance was not exclusive and that his company would look at more such alliances to attain its goal of over a million drivers under its platform.

Last year, Ola said it would buy cars from Nissan to expand its fleet. In June this year, Uber tied up with the Tatas to offer a vehicle-purchase solution to drivers and owners.

Mahindra India