Mahindra & Mahindra Financial Services Limited (MMFSL/Mahindra Finance), part of the Mahindra Group, has entered the leasing and subscription business. The new vertical would operate under the brand name ‘Quiklyz’.
The name ‘Quiklyz’ denotes an aspirational mindset of ensuring hassle-free vehicle usership to its consumers. Mahindra Finance says the “the objective for Quiklyz is to build a nimble model with very high asset quality.” It will also be a platform to launch similar products in semi-urban and rural markets in the future.
Fast-changing market dynamics
In a disruptive world, conventional vehicle owning patterns and dynamics are changing. Consumers today want to access vehicles earlier in their life and upgrade their vehicles faster than ever before. Changing millennial mind-set, asset light business models, car scrappage policy, rapid vehicle launches by OEMs, emergence of EVs and sharply reducing average holding period of new cars are expected to accelerate leasing and subscription as owners look at alternate ways of vehicle access without treating it as a long-term commitment.
The Quiklyz leasing and subscription model sees the consumer pays a monthly fee to access the vehicle of their choice across all car brands, at a lower price point versus regular car ownership. Mahindra Finance is also targeting corporates and businesses, which are also looking for alternate ways to have access to vehicles which can match their requirements without traditional ownership models.
Speaking on the new business initiative, Ramesh Iyer, Vice-Chairman and MD, 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 and Head, Leasing & Subscription, Mahindra Finance added, “A very important set of consumers for our new business will be the millennials who aspire to not only owning a vehicle, but to 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”.
It is expected that Mahindra Finance and Mahindra Group ecosystems would give an edge to Quiklyz with the business utilising all common infrastructure of Mahindra Finance.