Mahindra ties up with IOB to finance its range of vehicles
The leading commercial and utility vehicle manufacturer in the country, Mahindra and Mahindra has recently announced their tie up with the Indian Overseas bank to finance their commercial vehicles and the passenger cars. The Memorandum of Understanding (MoU) between the bank and the automobile manufacturing segment of the 14.4 billion USD Mahindra Group is to credit the IOB as their preferred financier to facilitate the financing process to the customers who seek to purchase the Mahindra automobiles.
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Among the others who were present at the function to mark the event, Arun Malhotra a senior Vice-president of Mahindra and Mahindra and K Subramanyam, the General Manager of Indian Overseas Bank were the ones to lead the new developments between the two parties. With the new deal between the bank and the company, the commercial vehicles will be available at a decent interest rate of 12.5% now. Moreover, Malhotra who was ecstatic at the development, on a positive note, tells that the deal has comes at a point when most of the commercial vehicle purchases take place. The fear of rise in the prices and the lending rates usually force the consumers to buy vehicles towards the year of the end where over 30% of the commercial vehicles bought with a financial aid.
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The month of December alone marks around 10% sale of the commercial vehicles through finances. Despite the slow market conditions, the domestic auto manufacturer has seen a stupendous growth in the passenger car and commercial vehicle segment of 20% and 30-40% y-o-y respectively. The home grown automobile manufacturer is one among a few who beat the sluggish growth in the car market seamlessly. The auto major is one of the largest exporters with its flagship model Mahindra XUV 500 along with commercial vehicles in Brazil, South Africa and South East Asian Nations. Mahindra and Mahindra has two SsangYong SUVs Rexton, Korando E and a compact MPV, Mahindra Xylo Mini (speculated) ready for the 2012 Indian Auto Expo beginning from 7th January.
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