While the news is rife of possible hikes in car prices, Toyota Kirloskar Motor has come up with in-house financing services, Toyota Financial Services India Ltd (TFSIL), a 100% subsidiary of Toyota Motors, to lure the Indian car buyers. At the initial phase the services will be extended to Bangalore and Delhi-NCRs, which will commence from June 5. The company has allocated Rs 260 crore for the purpose. The MD & CEO of TFSIL, Kazuki Ogura informs that the financial packages have been designed based on the valuable feedbacks from the dealers, and thus its services will be outstanding for faster processing, customised policies, innovative products, and competitive pricing and payouts. He also adds that the documentation process will be over 50% less than the usual industrial practices. The Approval processing time will be 2-4 days.
In an interaction with www.indianretailer.com, Sandeep Singh, DMD (Marketing) says "In India 70 per cent of cars sold are financed, so these services will actually spike the sales further."
Ogura comments, "Globally TFIS has 30 per cent penetration in cars financed at the Toyota outlets. Currently in China, Toyota Motor Finance, its financial services arm, has 11 per cent penetration in cars financed at the Toyota outlets. Toyota Motor Finance started in 2005 in China. The services also include insurance funding, and inventory funding for the dealers. Surely, at this bleak market situation this is a new strategy from Toyota stable to generate additional revenue from the interests on loans."