08/09/2016 3:00 PM IST | Updated 08/09/2016 3:49 PM IST

Mahindra Partners With OIa To Bring 40,000 Cars On Road In Two Years

The partnership between Mahindra and Ola will see vehicle sales and financing of $400 million in two years.

Danish Siddiqui / Reuters

Mahindra & Mahindra entered into a strategic alliance with India's taxi aggregator OLA for vehicle financing, insurance, and more driver partner-centric offerings.

The agreement aims at adding 40,000 Mahindra cars over the period of two years on the OLA platform. Mahindra has involved its finance arm as well for offering loan and insurance deal at special prices to the OLA drivers. The group is targeting the sales of services worth $400 million by the end of 2018 with this partnership.

Under the partnership, Mahindra wants to bring more models to potential OLA drivers who also want to own the car. It's also offering deals on its cars with a low down-payment, 100 per cent financing at lower interest rates, and premium insurance packages, among other offers.

"This initiative whose time has come, one that meets the current and future needs of Indian consumers, particularly younger ones who prefer shared mobility solutions. It also has a positive impact on the lives and prospects of at least 40,000 driver-owners and their families," Anand Mahindra, Chairman of the Mahindra Group said.

Mahindra also highlighted that in the near future we will see more electric cars on the road as the price point of the cars in that category becomes more affordable. The company will also be pushing some of its electric offerings to Ola soon.

Mahindra Group will be offering support in various phases of car ownership such as pre-sales, sales,ownership, and resale. During the ownership, the driver will get regular maintenance offers as well from the authorized centers.

"We are delighted to work with an iconic Indian brand like Mahindra to further our mission of building mobility for a billion Indians. As part of the strategic alliance between the two companies, we have created a unique solution to help tens of thousands of aspiring driver-entrepreneurs realise their dreams," Bhavish Aggarwal, co-founder and CEO of OLA said.

The company said that it is adding more functionality to the cars such as Wifi and providing more incentive to the drivers including family benefits for rapid expansion. OLA has also invested more than ₹450 crores in training drivers.

OLA also claimed that they now have the biggest auto network in the country with last mile e-rickshaws being added soon. For more revenue generation the company has started a partnership with corporates, intercity travel, and luxury services.

In June, Tata group struck a similar deal with OLA's competitor Uber to provide the potential driver owners offers on cars and financing.