Mahindra Finance on Wednesday announced the official launch of ‘Quiklyz,’ through which customers across cities can lease their prefered vehicles at ease and flexible subscription options without hassles of registration, insurance, scheduled and unscheduled maintenance, road-side assistance, and without any down payment. The company also offers the customers to pay as per their use.
Leasing in India is less than 1% of the total vehicle sales while it is about 45% in Europe. However, as millennials prefer to change vehicles once in three years, vehicle leasing prospects are expected to gain significance in the next five years. Quiklyz will leverage this trend and also Mahindra Finance's expertise as a leading NBFC having a base of 7.3 million customers and more than 1,380 branches across the country.
Mahindra Finance sees the new-age digital platform for vehicle leasing and subscription as a huge opportunity to create value for its stakeholders with a profitable business model and build a strong balance sheet out of emerging opportunities in this adjacent business vertical. Besides, it will also help it penetrate the urban centres where it was not strong yet.
Initially, the company will launch its services in Bengaluru, Chennai, Delhi, Gurugram, Hyderabad, Mumbai, Noida, Pune, and expand it further to other cities across India, including Tier-2 cities, covering 30 locations over the next year. Quiklyz is also in discussions with several automotive OEMs and will announce partnerships on leasing and subscription shortly.
According to the company, the services will be available for both corporate (B2B) and retail (B2C) customers. Under the B2B segment, the company aims to offer services to corporates and fleet operators, while in the B2C segment, it will target customers with the millennial mindset. It will cover vehicles across all major auto OEMs, with a wide range of choices in terms of vehicle models, variants and colours. As the vehicle will be registered in the customer's name as a private vehicle, he will have the choice to get approved accessories. In the case of relocating, the customers can continue the lease without any hassle, as the company will offer a new vehicle in the new location.
Beginning with leasing cars, the company hopes to expand its offering to other vehicle segments, including three-wheelers.
Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance, said, “We aim to achieve a book size of INR 10,000 crore in a span of 3-5 years. Leasing is seeing significant traction in the last mile mobility space especially with EVs, something our business module will also focus on. With leasing being a relatively new concept for Indian retail consumer, we wanted Mahindra Finance to be at the forefront of this module facilitating millennials and new age corporates alike for hassle free ownership of vehicle.”
Raul Rebello, Chief Operating Officer, Core Business, Mahindra Finance, said, “Coupled with the multi-faceted advantages accruing from the Mahindra Group companies, our spread and reach pan India would be an advantage as we expand our coverage. Iam confident that our customers, individuals and corporates alike would be very encouraged with our customised and unique packages on offer.”
Turra Mohammed, SVP & Business Head, Quiklyz, said, “Leasing currently accounts for 10% of corporate registered vehicles; and we expect it to grow to 20-25% share in the next five years. In the retail – B2C segment, subscription could account for 3-5% of car sales in next 3-5 years.”