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Tata Motorfinance, the financial division of Tata
Motors, has started offering car loans to customers of
Fiat India, the first time the firm has financed non-Tata
products.
This is the just latest step in a growing partnership between
Fiat and Tata Motors which in March saw Fiat India's
model range being sold across selected Tata Motors'
dealerships and which has also seen Tata Group Chairman Ratan
Tata joining the Fiat Group board.
Tata
Motors are now selling the Fiat range in India,
which includes the Palio, Petra and Adventure models, in city
located dealerships around Delhi, Chennai, Kolkata and Bangalore,
with plans in hand for a further roll-out to widen the footprint
which is
expected to happen early next year. Tata Motors sales
staff have also been receiving training from Fiat. Three Fiat India
dealerships have also begun selling Tata Motors models.
Initially the financing deals Tata Motorfinance will only
be available to Fiat India customers directly, and not
the dealerships. “Tata Motors has decided to sell
Fiat cars through its dealers so we have decided to
finance Fiat’s customers. The credit will be limited to
the customers of Fiat India and will not involve its
dealers,” said Aubrey Rebello, the head of Tata
Motorfinance.
Tata Motorfinance (TMF)
has recently emerged as one of the leading vehicle
financing operations in India. Tata Motorfinance has
achieved this milestone, while financing mainly Tata
Motors vehicles. The overall vehicle financing done by
TMF in the year 2005-06 was about Rs 5500
crore, a 60 per cent increase over Rs 3,400 crores in
the previous fiscal.
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Tata
Motors are now selling the Fiat range in India,
which includes the Palio, Petra and Adventure models, in city
located dealerships around Delhi, Chennai, Kolkata and Bangalore,
with plans in hand for a further roll-out to widen the footprint
which is
expected to happen early next year. |
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|
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Tata Motorfinance, the financial division of Tata
Motors, has started offering car loans to customers of
Fiat India, the first time the firm has financed non-Tata
products. |
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|
A total of about 113,000 contracts booked by TMF
last year including refinance and construction
equipment; 96,247 new vehicles were financed, a 43 per
cent increase compared to 67,356 vehicles in 2004-05;
refinance business grew by 110 per cent and construction
business finance grew by 165 per cent.
Aubrey Rebello, the
Chief of TMF, says, "Our goal is to be the
preferred financier for Tata Motors customers and
channel partners. We are looking at capturing customer
spending over the vehicle life-cycle, by extending value
added products combining financing offerings with
insurance, fleet management, operating leases,
re-finance, and other products."
Tata Motors Limited is India's largest automobile
company, with revenues of Rs. 24,000 crores (USD 5.5
billion) in 2005-06. It is the leader by far in
commercial vehicles in each segment, and the second
largest in the passenger vehicles market with winning
products in the compact, midsize car and utility vehicle
segments. The company is the world's fifth largest
medium and heavy commercial vehicle manufacturer and has 22,000 employees. Established in 1945, Tata Motors'
presence indeed cuts across the length and breadth of India.
Over 3.5 million Tata vehicles ply on Indian roads, since
the first rolled out in 1954. The company's manufacturing
base is spread across Jamshedpur, Pune and Lucknow,
supported by a nation-wide dealership, sales, services and
spare parts network comprising about 1,200 touchpoints.
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