Tag: vehicle

Mahindra Finance launches vehicle leasing, subscription business

Banking & Finance

[ad_1]

Read More/Less


Mahindra & Mahindra Financial Services on Wednesday announced the launch of its leasing and subscription business Quiklyz.

“This venture is a new-age digital platform for vehicle leasing and subscription, that aims to provide great convenience, flexibility and choice to customers across cities,” it said in a statement.

It provides a digital journey on car usership with which the customer can access a brand-new car without purchasing it. Quiklyz will take care of registration, insurance, scheduled and unscheduled maintenance, road-side assistance. It will be available for both corporate (B2B) and retail (B2C) customers.

In the initial phase Quiklyz will launch its services in metro cities like Bengaluru, Chennai, Delhi, Gurugram, Hyderabad, Mumbai, Noida and Pune. It will expand to other cities, including tier-II cities, covering 30 locations over the next one year. It is also in discussions with several automotive OEMs.

Ramesh Iyer, Vice-Chairman and Managing Director, Mahindra Finance, said, “We aim to achieve a book size of ₹10,000 crore in a span of three to five years. Leasing is seeing significant traction in the last mile mobility space especially with EVs, something our business module will also focus on.”

Turra Mohammed, SVP and Business Head – Quiklyz, said at present leasing accounts for 10 per cent of corporate registered vehicles. “We expect it to grow to 20-25 per cent share in the next five years. We will leverage Mahindra Group’s extensive network to expand Quiklyz to 30 cities within a year,” he said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Kotak Mahindra acquires vehicle financing portfolio of Volkswagen Finance

Banking & Finance

[ad_1]

Read More/Less


Kotak Mahindra Group has acquired the vehicle financing loan portfolio of Volkswagen Finance, the two said in a statement on Thursday.

Volkswagen Finance Private Ltd (VWFPL) is the Indian captive financing arm of Volkswagen Group.

Kotak Mahindra Prime (Kotak Prime) will acquire the passenger cars and two-wheelers portfolio, and Kotak Mahindra Bank will acquire the commercial vehicles portfolio of Volkswagen Finance.

“With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around ₹1,340 crore,” the statement said, adding that all the acquired loans are classified as ‘Standard Loans’ as per the Reserve Bank of India guidelines.

Kotak has also acquired the non-performing assets portfolio of VWFPL.

D Kannan, Group President – Commercial Banking, Kotak Mahindra Bank and Director of Kotak Mahindra Prime, said, “The strategic intent behind this acquisition is to further strengthen Kotak’s vehicle financing loan portfolio and expand our market share. The long-term growth prospects of the Indian vehicle market are very attractive, and this acquisition reinforces Kotak’s standing as one of the leading vehicle financing players.”

Aashish Deshpande, MD and CEO, Volkswagen Finance, said, “The sale of our retail portfolio aligns to our new strategic focus towards a refined digital strategy through our subsidiary, the digital platform KUWY.”

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

All you wanted to know about bumper-to-bumper insurance

Personal Finance

[ad_1]

Read More/Less


Shyam, who is on the verge of buying a car, finds himself discussing more about car insurance than the car itself.

Manohar: So Shyam have you finalised the car you want to buy?

Shyam: Yes, but that seems far easier than deciding on an insurance plan to go with it. The dealer informs me that something called ‘third party’ insurance is mandatory and now a new bumper-to-bumper cover is all over the news.

Manohar: Yes, the Madras High Court has issued an order mandating bumper-to-bumper insurance cover every year, apart from providing cover for the driver, the passengers and the owners of the vehicle for five years. These are to be purchased over and above the third party insurance.

Shyam: How are they different from each other?

Manohar: Well first, you must be aware of mandatory third party insurance which provides cover against liability from damage to third parties. Most motor insurance policies have add-ons available to insure the driver, the owner and the passengers in line with the court order.

Specifically, personal accident policy covers the owner-driver, the paid driver and the passengers.

Shyam: Then, what is bumper-to-bumper cover?

Manohar: In the current parlance, bumper-to-bumper cover is also known as zero depreciation cover. This add-on allows you to cover the parts of a car, except tyres and batteries, against damage. And as the name suggests, no depreciation will be charged onthe value of the car while deciding on the claim amounts.

Any claim without a zero depreciation add-on is settled by adjusting for the wear and tear of the part captured by the depreciation charge. This makes the cost of replacing that part higher. Bumper-to-bumper insurance can land a claim amount closer to the actual value without depreciation. However, this policy does not cover engine damage caused by water ingress and oil leakage.

Shyam: So, what should one expect?

Manohar: Well since the order has been passed only recently, there is not much clarity on how it will be implemented.

The court itself has placed the order on hold as insurers asked for time to design an appropriate product. For one, the issue of buying the cover upfront for five years has to be clarified. The pricing and the availability of such a comprehensive product too will be something to watch out for.

Shyam: Seems like we have to wait and watch for more clarity on this.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,