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Our Bureau

Mangalore , Jan. 6

TOYOTA Kirloskar Motor Private Ltd in its bid to penetrate into rural and semi-urban markets, has entered into an agreement with Corporation Bank for financing their vehicles.

After exchanging a copy of memorandum of understanding with the bank officials in this regard here on Tuesday, Mr K. Srikanth, General Manager (Finance), Toyota Kirloskar Motor Pvt Ltd, stated that this arrangement would help Toyota penetrate into rural and semi-urban markets. "We hope to tap into the network of Corporation Bank, which has strong presence in rural and semi-urban areas, to enable more customers experience the joy of owning a Toyota vehicle," Mr Srikanth said.

In a chat with Business Line, he stated that they are hopeful of penetrating the rural market following a good agricultural season this year. A base of 76 suppliers, along with nearly 700 branches of Corporation Bank, will help in making inroads into semi-urban and rural markets, he added.

Toyota Qualis and Toyota Corolla have a market share of 37 per cent and 45 per cent respectively in their segments.

According to him, this agreement could help fetch business worth Rs 2,200 crore.

Stating that the Corporation Bank is in the forefront of financing vehicles, the General Manager of the bank, Mr M.D. Mallya, said the agreement would help the bank to increase its base in the auto finance segment. The customers could avail of the benefits of the finance scheme with an interest rate of 9.5 per cent up to three years and 10 per cent between 3 and 7 years. Interest is paid on reducing balance amount and there is no service charge under this scheme, he said.

The Deputy General Manager of Corporation Bank, Mr B.R. Bhat, and Dr Sripad Bhat, Deputy General Manager (Public Affairs), Toyota Kirloskar Motor Pvt Ltd, were present.

More Stories on : Alliances & Joint Ventures | Consumer Finance | Cars | Public Sector Banks

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