Pre-owned cars are the new ‘new’ and Mahindra Finance’s new vehicle leasing and subscription initiative expects to win over buyers and influence consumers as a new-age digital platform.
05 Dec 2021 | 3180 Views | By Murali Gopalan.
Pre-owned cars are the new ‘new’ and Mahindra Finance’s new vehicle leasing and subscription initiative expects to win over buyers and influence consumers as a new-age digital platform.
One of the key triggers for Mahindra Finance’s recently launched Quiklyz initiative was the fact that “today’s car buyers do not ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Pre-owned cars are the new ‘new’ and Mahindra Finance’s new vehicle leasing and subscription initiative expects to win over buyers and influence consumers as a new-age digital platform.
One of the key triggers for Mahindra Finance’s recently launched Quiklyz initiative was the fact that “today’s car buyers do not want to get tied down”. As Turra Mohammed, SVP & Business Head, adds, “Commitment is a big issue as also affordability.”
Yet, there is tremendous aspiration for new models and this is where Quiklyz is hoping to make a difference as a new-age digital platform for vehicle leasing and subscription. The idea is to help buyers access new cars easily without worrying about registration, insurance and maintenance.
“Aspiration levels are the same across the country and the challenge is to address that digitally. Ultimately you have to deliver the product and service which means the whole mechanism should be in place,” says Mohammed. Research by the team also indicated that there is still a pride of ownership in cars even while people were open to the idea of renting them.
This paradox has been sought to be addressed with the leasing option. “Someone with a sedan may want to move over to an SUV but money could be a constraint and here is where the leasing model may help,” he adds. And even while Quiklyz is essentially for new cars, it will also give a fillip to the used car space going forward.
When that happens, there will be a big market for leasing used cars too. As Mohammed points out, the car market in India is still nascent because there is just not enough supply. This is quite unlike the US and Europe where leasing companies are the biggest supply sources.
“As we grow, there will be enough aspirational customers to buy used cars or lease them. It is a very big opportunity in India and I will be happy to see more leased cars come back (into the used car parc),” he says. Clearly, Quiklyz will be eyeing this space in the future where the number of used cars will grow exponentially in the coming years and people will be happy to steer clear of the ownership option.
Mohammed also believes that the stage is set for good growth in the new car leasing space, for which Quiklyz was essentially created, even while there are concerns about the Covid aftermath which has eaten into the savings of many households. “We are here for the long term and any short term setback is not an issue. The job market is also getting hot in urban centres,” he says.
Few EVs means limited choice for used green cars
Plans are also on for leasing electric cars since these are also part of the aspiration quotient for millennials in particular. Right now, the “choice basket is limited” but growth could still come from leasing especially when some buyers may not want to take a risk with ownership . “Except for early adopters, those sitting on the fence will be keen on leasing electric cars,” says Mohammed.
Leasing EV three-wheelers has already kicked off and work is underway with OEMs for their cargo range which, unlike cars, is already profitable because they are part of the B2B space. The e-commerce boom has clearly fuelled growth here with online deliveries now the name of the game.
In the agrarian space, agencies could lease out expensive equipment like harvesters, cultivators etc and then rent them out to farmers. Tractors will continue to follow the ownership route at least
for now. As for leasing electric two-wheelers, Mohammed says this can wait for now — “we will try to put in our mouth what we can chew and this is something we are not looking at yet.” a