M&M Financial eyes pacts with carmakers

Mahindra & Mahindra Financial Services (MMFSL) will talk to companies like Maruti Udyog (MUL) and Hyundai Motor for financing the car companies' products in rural India on a standardised basis.

"At present, we finance Maruti and Hyundai cars indirectly or through arrangements with the company's dealers. We want to standardise this by directly partnering with Maruti and Hyundai. People in certain rural pockets are unable to buy automobiles due to limited vehicle-finance options from private or public sector banks. Our aim is to fill this gap. This would benefit both us as well as the carmakers," said Ramesh Iyer, managing director, MMFSL.

A direct tie-up will help customers in choosing MMFSL as a finance provider for Maruti's rural outlets, which would also increase the scope of co-existence of a Maruti and a MMFSL outlet.

If the partnership succeeds, MMFSL would seek similar agreements with companies like General Motors, Ford and Honda.

The company also has plans to partner with Bajaj Auto, Hero Honda, and TVS for two-wheeler financing. MMFSL is expected to begin two-wheeler financing during this quarter.