The company will have a national rollout over the next six months, and has forged partnerships with eight leading banks and finance companies: ABN Amro Bank, HDFC Bank, ICICI Ltd, Standard Chartered Bank, Kotak Mahindra and Sundaram Finance. It has two existing joint-ventures as well in Citicorp-Maruti, and Maruti Countrywide. The company is also set to launch similar services in car insurance very soon.
Maruti Finance is one of the four auto-related service businesses that MUL is venturing into. MUL with its lease and fleet management for corporates, pre-owned cars, and auto insurance businesses will enable it to provide mobility-related solutions and extend its relationship with the car customer during the entire ownership cycle.
Said MUL managing director Jagdish Khattar: Maruti Finance marks the coming together of the biggest players in the car finance business. They are the benchmarks in quality and efficiency. Combined with Maruti volumes and networked dealerships, this will enable Maruti Finance to offer superior services and competitive rates in the marketplace.
Explaining the rationale behind the tie-up, Mr Khattar said the total finance provided by all companies in the business for Maruti cars is around Rs 6,000 crore. Most of these major players in car finance can now come under a single roof and increase penetration and reach. This will provide convenience to customers.
Better customer experience and the potential for higher volumes generated by Maruti Finance, will benefit all partners in the new venture. The rate of interest would be common and finance companies would offer the same terms to its customers, Mr Khattar said.
Mr Khattar said that at least three companies would be allotted to each car-dealer and Maruti Finance would roll out in the rest of the country over the next six months.
Maruti Finance, it is expected, will bring transparency and convenience for the customers in a market that is highly fragmented and dominated by the intermediaries. It will also offer value-added services such as extended warranty, additional service, finance for car insurance and Maruti genuine accessories.