Mahindra Quiklyz aims to deploy 40,000 EVs by 2025
Mahindra & Mahindra Financial Services expects its leasing business Quiklyz to end FY23 with a book value of Rs 600-700 crore and sees the book size swell to Rs 5,000 crore by 2025
In a bid to capitalise on the growing demand for zero emission vehicles, Quiklyz, the vehicle leasing and subscription business of Mahindra & Mahindra Financial Services Limited expects 20 percent of its leasing business to come from zero emission products in the next two to three years.
Given the prevailing uncertainties over the resale value of an electric vehicle, there has been a growing demand for leasing and subscription solutions amongst individuals and corporates, which is what Quicklyz hopes to capitalise on.
Autocar Professional learns, the company which has already financed over 15,000 electric vehicles to fleet operators across three-wheelers and four-wheeler passenger and load vehicles, aims to build its EV portfolio to about 40,000 units by 2025. Leasing deals will play a pivotal role in driving the business higher, says the company.
Raul Rebello, MD and CEO - Designate, Mahindra Finance said, “We took an early leap in leasing. We know it's a very nascent market. We feel this segment has a potential and a recipe for disruption, as people are ready to pay per use. Leasing will become a natural option going ahead. We are bullish on Quiklyz and expect the business to account for five percent of the total book size of Mahindra Finance. Which means this may translate to a book size of around Rs 5,000 crore. That is our aspiration.”
Leasing business is brisk and for Mahindra Finance it has been worth Rs 50 to 70 crore per month under Quiklyz. It is likely to end FY23 with assets under management of close to Rs 600 to 700 crore under its leasing business.
Mahindra Finance claims the company has developed value proposition for corporates to take vehicles on lease as they can gain from tax benefits as well as dont pass on their burden on the balance sheet. It offers both option of wet and dry lease. Customers who want to maintain the vehicle can opt for wet lease.
Beyond the B2B platform of corporates, Quiklyz sees a much bigger potential amongst the individual buyers and even the last mile mobility providers. The company has already partnered some big last mile and shared mobility providers to tap into this fledgling market.
Mahindra Finance has extended over 500 EVs to NCR based BluSmart ride hailing platform in 2022, just a few months back, the company also signed an MoU with five last mile mobility provider to supply 1,000 electric three-wheelers by first half of 2023 on lease – right from Mahindra Logistics, MoEVing Urban Technologies, Creativity at Best Technologies, Magenta and, Terrago Logistics. Quiklyz claims it currently has the largest portfolio of electric vehicles (EVs) on its leasing and subscription platform. It provides both Electric 4W as well Electric 3Ws across OEMs including Mahindra, Tata Motors, Piaggio, Mercedes-Benz etc. Quiklyz’s value proposition for its customers includes zero down payment schemes, flexible tenure options, no resale or maintenance hassle, and much more.
It has partnered with more than 15 electric last mile mobility delivery companies and several electric mobility providers since its inception. The platform has leased electric vehicles across cities including Mumbai, Bengaluru, Chennai, Delhi, Hyderabad, Pune, Noida, Gurugram, Indore and Nagpur.
The Quiklyz is carved out as a completely different set up, to ensure specialised focus on leasing and even the majority of Mahindra Finance’s marketing spend is towards the leasing platform in recent quarters. The advertising expense for that business is double of what it spends on conventional financing businesses. The brand is also witnessing a lot of traction from the ESG and Environmental Funds to support EVs in the leasing business. The company’s vehicle subscription model is also gaining traction as it ensures that there’s no risk or uncertainty about maintenance, battery life, and resale value of a prospective user.
This feature was first published in Autocar Professional's February 15, 2023 issue.
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