Till now, a card swipe would have fetched you grocery items or consumer durables, but in an industry first, consumers can now buy a car with their credit cards.
Tata Motors Ltd, India's largest vehicle maker by revenues, has offered the Nano small car to consumers who wish to buy it using credit cards. The move is aimed at making the vehicle available to the buyer with minimum hassles.
"We are proud to offer this industry first phenomenon to our customers. This offer will enable customers to own a car in the fastest and hassle-free manner. With the introduction of this offer, consumers get the benefit of converting the entire amount on the credit card into interest-free installment, spread over a period of 12 months and manage monthly cash flow better," said Ranjit Yadav, president, passenger vehicles business unit, Tata Motors.
The buyer will have the option to convert the entire amount into equated monthly installments (EMIs) at zero per cent interest over a period of 12 months in what would be among the fastest methods to own a car. The EMI would be Rs 8,333 per lakh.
Tata Motors has partnered with five banks for this special scheme - Axis Bank, HSBC Bank, ICICI Bank, Kotak Mahindra Bank and Standard Chartered Bank. Customers in India with credit cards belonging to these banks can avail of this special scheme in 26 cities across 75 Tata Motors dealerships. Tata Motors has pulled out all stops to revive its passenger car business at a time when rivals such as Maruti Suzuki India Ltd, Hyundai Motor India Ltd and Honda Cars India Ltd are enjoying better sales and consumer demand.
The company has set several touch-points in rural areas for the promotion of the Nano, while also changing the face of its showrooms in the urban areas, making it more technology-driven with stylish details.
Yesterday, the company launched a unique buy-back programme for its Manza sedan offering buyers an assured 60 per cent return on the purchase price of the car after three years. The scheme was launched under a special programme devised only for the Manza.
A day after the Union Budget was announced, the company cut the price on the the Indica, Indigo and Manza range by up to Rs 50,000. This was done to entice the buyers, who had shunned the brand during February.
The company's total sales of commercial and passenger vehicles (including exports) fell to 61,998 in February from 92,119 units in the corresponding month a year ago.