Mahindra & Mahindra Financial Services (MMFS), part of the Mahindra Group, on Thursday announced its entry into the leasing and subscription business.
To be operated under the brand name ‘Quiklyz,’ the new vertical denotes the changing mindset on mobility and facilitates the customers to access vehicles earlier in their life and upgrade their vehicles faster than ever before. The consumer pays a monthly fee to access the vehicle of their choice across all car brands at a lower price point vs regular car ownership. Corporate and businesses are also looking for alternate ways to access vehicles that can match their requirements without the burden of traditional ownership models.
The name ‘Quiklyz’ denotes an aspirational mindset of ensuring hassle-free vehicle usership to its consumers. The objective for ‘Quiklyz’ is to build a nimble model with very high asset quality. This also gives the brand a springboard to launch similar products in semi-urban and rural markets in times to come.
Changing millennial mindset, asset-light business models, car scrappage policy, rapid vehicle launches by automotive OEMs, the emergence of EVs and sharply reducing average holding period of new cars etc., are expected to accelerate leasing and subscription as owners look at alternate ways of vehicle access without treating it as a long-term commitment.
Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance, said, “With ‘Quiklyz’, we aim to make the process of ownership convenient for our consumers both for individual and corporate segments alike. I am confident ‘Quiklyz’ will add substantial value to our existing financial business portfolio as we aspire to tap all emerging opportunities in this space”.
Turra Mohammed, SVP & Head, Leasing & Subscription, Mahindra Finance, said a significant set of consumers for its new business will be the millennials who aspire to own a vehicle and do so in a hassle-free manner. ‘Quiklyz’ will provide that convenience while allowing them to frequently change or upgrade to newer models entering the market without any down payment. “For corporates as well, leasing is fast emerging as a viable option both for providing cars to their employees and obtaining vehicles for their business use,” he added.