28 Jun 23

Arval Launches Joint Car Subscription Model with MG Motor in Germany

Arval has announced the launch of a joint car subscription model with MG Motor in Germany. This move is in response to the increasing popularity of car subscription models as an alternative to traditional car ownership, financing, and leasing.


The new offering, known as "MG Auto Abo powered by Arval," provides customers with a flexible contract term and the benefits of Full-Service Leasing. Initially, the MG4 Electric in luxury trim (model year 2023), an all-electric hatchback with a WLTP range of 435 kilometers, will be available for interested parties. The collaboration between Arval and MG Motor aims to extend the Auto Abo subscription to business customers and gradually expand the vehicle selection.


The "MG Auto Abo powered by Arval" subscription model combines convenience, fixed monthly costs, shorter contract commitments (12 months), attractive conditions, and fast availability. Customers can easily initiate the contract through MG Motor Germany's website, selecting their desired start date and receiving a vehicle from the manufacturer's available stock. The subscription includes inspections, maintenance, wear repairs, all-weather tires, delivery costs, vehicle tax, and main investigation. Additionally, customers benefit from comprehensive risk protection, breakdown assistance, and damage management by Arval. At the end of the contract period, users can choose to terminate the contract or continue using the vehicle on equal terms, with the subscription automatically extending by one month to a maximum of 24 months.


This joint car subscription model represents the next chapter in the partnership between Arval and MG Motor. Arval is MG Motor's preferred leasing partner for private and business customers in the MG Motor agent business in Germany. The successful collaboration between the two companies has already resulted in 10,000 cars leased to clients in the country. With this new subscription model, the partnership aims to deepen its collaboration and explore opportunities to expand into other geographies in the future.

Alain van Groenendael, Arval Chairman and CEO, expressed his satisfaction with the expanded cooperation, stating, "Energy transition is in our DNA, and we have a role to play in electrified vehicle adoption. With this kind of offer, we are lifting some of the barriers to electric vehicle adoption and making it simpler for individuals to switch to an EV." Jan Oehmicke, Vice President DACH of MG Motor Europe, emphasized the changing landscape of the automotive industry and the increasing importance of car subscriptions as flexible mobility solutions. He stated, "Thanks to our strategic partnership with Arval Germany, MG Motor now offers a car subscription that can be adapted to agile lifestyles, providing customers with a direct contact to the manufacturer and a flexible form of mobility at fair and calculable costs."

The joint car subscription model developed by Arval and MG Motor represents an innovative and high-quality approach to mobility, catering to the evolving needs of customers in an era of transformative change in the automotive industry.

Picture Credit: Shutterstock 2320919985

Authored by: Yves Helven