Monday 4 June 2012

Toyota launches financial services in India

With an investment of Rs 260 crore TFSCI will begin operations in Delhi NCR and Bangalore from June 5.

Toyota launches financial services in India

Japanese auto giant Toyota has launched its financial services in the country on Wednesday with an initial investment of Rs 260 crore. Toyota Financial Services India (TFSI), a wholly-owned subsidiary of Toyota Financial Services Corporation Japan, will commence its operations in Delhi, NCR and Bangalore through the dealerships present there. The company also plans to further expand its operations to other metro cities within this fiscal year.

The services will be starting from June 5 onwards and India is the 34th country in the world, where Toyota is now offering this service.TFSI will concentrate only on Toyota customers in India and the company will render interest rates on loans comparable to the market, which is around 12-12.5 per cent, he further added. Globally, TFS has around 17 million customers and employs around 8,400 people worldwide.

"The aim is to reach to other metro cities within this fiscal," TFSI Managing Director and CEO Kazuki Ogura said, adding if required the company could increase the investments here”. Toyota Financial Services Corporation Executive Vice-President Eiji Hirano said “India is a market full of opportunities, by 2015 it is estimated that the car market here will touch four million units (a year). It is the right time to enter India at this moment".

Recently many carmakers including Volkswagen and Maruti have started offering financial services as a sub-product, partly to increase their margins that have been lowered due to inflation and fluctuating currency and also to provide better services to its customers. Though, majority of the times the loans will be available at the market rates, we can also expect some special offers during festivals and end of year, which will make Toyota products lot more lucrative.

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