Mahindra Finance launches vehicle subscription business, Quiklyz
Under the Quicklyz brand, customers can own a white-number plate vehicle on a fixed monthly rental.
Mahindra & Mahindra Financial Services (MMFSL) is betting big on the potential of vehicle subscription/leasing, which it says is a very niche segment in India. The company officially launched its leasing and subscription business Quiklyz.
The digital platform for vehicle leasing and subscription aims to provide convenience, flexibility and choice to customers across cities. Under the Quicklyz brand, customers can own a white-number plate vehicle on a fixed monthly rental. The customer won’t have to pay any deposit and the rental will also take care of registration, insurance, scheduled and unscheduled maintenance along with road-side assistance.
Quiklyz services will be initially launched in Bengaluru, Chennai, Delhi, Gurgram, Hyderabad, Mumbai, Noida, Pune and will expand to 30 cities including Tier IIs over the next one year. It is also in discussions with several automotive OEMs and will announce partnerships with them on leasing and subscription.
The leasing option 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 B2C segment, it will target customers with millennial mindset. It will cover vehicles across all major auto OEMs, with wide range of choice in terms of vehicle models, variants and colours.
Ramesh Iyer, VC and MD, Mahindra Finance said, “We aim to achieve a book size of Rs 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.”
Raul Rebello, COO, Mahindra Finance added that, “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. I’m confident that our customers, individuals and corporates alike would be very encouraged with our customised and unique packages on offer”.
Turra Mohammed, SVP and Business Head – Quiklyz pointed out that, “Leasing currently accounts for 10 percent of corporate registered vehicles; and we expect it to grow to 20-25 percent share in the next 5 years. In the Retail – B2C segment, subscription could account for 3-5 percent of car sales in next 3-5 years.”
According to the company statement, Quicklyz will also “cover electric 3-wheelers, commercial vehicles and construction vehicles. We will be a full player not just a niche player.” The newly formed leasing vertical will leverage its group synergies to better forecast vehicle demand, and hence maintain a significant inventory for the customers. The company already has leased over 1,000 cars under the B2B leasing program, the idea is to expect a similar or better traction in the B2C side. Around 300 electric three-wheelers have also been leased out.
Some of the key features of Quiklyz value proposition includes –
- Zero Down Payment and lower monthly outflow vs. Loan
- No uncertainty on vehicle maintenance costs, resale price etc. with a fixed monthly fee
- White number plate & RC book in individual’s name
- No resale or maintenance hassles
- Wide range of options for customer at end of tenure - Return/Extend/Buy/Upgrade
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