Search the Internet          Tips  Sites: Finance, Investment

MUL in talks for offering car finance

BS Corporate Bureau

Maruti Udyog Ltd has decided to offer its proposed car finance and auto insurance business under the 'Maruti Finance' and 'Maruti Insurance' brand names.

"We are talking to various finance and insurance companies to launch these new businesses," Maruti managing director Jagdish Khattar said after inaugurating the company's first used car outlet in the city. He declined to reveal the names of companies Maruti was in discussions with for the new ventures.

Khattar said Maruti's two existing car finance joint ventures -- Maruti Citicorp and Maruti Countrywide with Citibank and GE Countrywide, respectively, would also offer services under the 'Maruti Finance' brandname.

The car finance and auto insurance are part of the company's four-pronged entry into the services sector under the 'Project Vistaar' programme this fiscal.

Maruti has already launched its corporate lease and fleet management business under the 'N2N' brandname, and the used-car business christened 'Maruti True Value'.

"Our objective is that in the distant future, two per cent of our turnover should come non-manufacturing activities, Khattar said.

Maruti True Value is one of the four service businesses that Maruti is entering, the others being lease and fleet management for corporates, auto insurance and auto finance.

The launch of Maruti True Value will expand the family of Maruti customers, provide reassurance to existing Maruti customers about disposal of their cars and reinforce Maruti's image of a reliable and trustworthy company, a company release stated.

Under Maruti True Value, Maruti cars less than four year old, having being driven up to 60,000 km and not having changed two previous ownerships, will be accepted for purchase. Designated engineers from Maruti will be present at True Value outlets. They will conduct a standard 120-point check of a vehicle brought to the outlet.

Under True Value, the seller will have the option to be paid in cash, or get a True Value car in exchange or a brand new Maruti car in exchange. Cars bought under Maruti True Value will be taken to Maruti workshops. Using Maruti genuine parts, skilled technicians will refurbish them for re-sale under the Maruti True Value brand.

Cars bought under Maruti True Value will carry a one-year warranty and three free services. Convenient finance options will also be offered to the buyers of such cars, the release added.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report