This year has not been a great one for the Indian automobile manufacturer, Mahindra and Mahindra limited. As per their performance report issued in June 2013, the company had suffered a loss of overall 8% in its sales as compared to last year. It suffered a loss in almost of its core areas. May be this tie up with the Central bank of India is its strategic move to lure customers to its dealerships again. Mahindra and Mahindra limited has tied up with the Central bank of India making it the Preferred Financier.
The MoU (Memorandum of Understanding) signed between the two firms will allow the Mahindra and Mahindra customers, irrespective of their strata in the society, to avail benefit from various schemes and loans which will tailored made for them by Central Bank. Some of the schemes available are Cent Vehicle, Cent Sahyog and SRTO schemes for purchasing 3 wheelers, 4 wheelers and commercial vehicles from Mahindra and Mahindra limited. Chief sales and customer care officer of the Automotive division at Mahindra and Mahindra, Mr. Arun Malhotra and General Manager of retail banking at the Central Bank of India, Mr. Narinder Singh signed the MoU. Other high rank officials present during the signing of MoU were Chairman and Managing Director of Central Bank of India, Mr. Mohan Tanksale, executive director of the Central Bank of India, Mr. Malay Mukherjee, Executive Director of Central Bank, Mr. R.K. Goyal and DGM of channel finance and DBD of Automotive division at Mahindra and Mahindra, Mr. Naveen Bathla.
Central bank of India is one of the oldest public sector banks in the country with a history of over 101 years. The bank has a total of 4100 branches in over 27 states in the country. It also has 270 extension counters all over the nation. On the other hand, Mahindra and Mahindra is one of the leading car manufacturers in the country. It deals in almost all the automobile segments both in domestic as well as international market. In the country, it has a huge network of 250 dealerships, covering almost all the states. This tie up between the two renowned firms allows them to benefit from each others hold and penetration into the market. The business for both the firms is benefited by this tie up.
Managing Director and Chairman of Central Bank of India, Mr. V. Tanksale, speaking at the signing event said that “Central Bank of India is continuously expanding its operations in commercial and passenger vehicle financing, duly suiting to the needs of all segments of customers through its various tailor made loan products.” He also went ahead to say that this tie up will make both the firms capable of offering the customers better services.
After signing the MoU, General Manager of Central Bank of India, Mr.Narinder Singh said that this tie up will allow the customers to avail benefits at very competitive rates of interest.
Chief Sales and Customer Care Officer of the Automotive Division at Mahindra and Mahindra, Mr. Arun Malhotra said that “At Mahindra, we always look at options to provide the best schemes to our customers and give them the power of choice. This strategic tie-up is a step in the same direction. Central Bank of India offers innovative products and services at affordable rates. With highly competitive schemes for car loans, three wheeler loans and commercial vehicle loans, we are hopeful of a good response from our dealers and customers.”