Covid-Impact on Auto: Maruti launches Buy car now pay later with Cholamandalam

Source :Sify
Author :Sify
Last Updated: Fri, May 22nd, 2020, 18:01:31hrs
Vitara-Brezza

New Delhi: The impact of Covid on the automotive industry has sunk to such an extent that India's leading automaker has been forced to promote a new campaign - "Buy now, Pay Later..."

Maruti Suzuki India Limited on Friday announced that in partnership with Cholamandalam Finance a scheme that will allow users to own a car was being launched. Cholamandalam Finance will be offering easy financing options.  

The new solution will allow customers to start paying the EMIs after 60 days of loan disbursement. The offer is available on select Maruti Suzuki models and will be applicable on loan disbursement till June 30, 2020, a note added.

The note also added that the Finance scheme involves a two-month deferment of Equated Monthly Installment (EMI) to car customers who currently are under resource crunch amidst the Covid-19 pandemic.

Cholamandalam Investment & Finance Co Ltd Executive Director Ravindra Kundu said the synergies between the organisations are aimed towards singular focus to bring benefits to customers.

MSI Executive Director (Marketing & Sales) Shashank Srivastava was quoted as saying, "this (partnership) is aimed to offer comfort to buyers who may have faced liquidity crunch during the Covid-19 lockdown. I am sure that the "Buy-Now-Pay-Later Offer" will encourage customers towards car purchase without putting immediate extra pressure on their pockets."

Cholamandalam Investment & Finance Co Ltd Executive Director Ravindra Kundu said the synergies between the organisations are aimed towards singular focus to bring benefits to customers.

"This partnership will give us a strong foothold at the car financing space, with our 1,094 branches spread across semi-urban and rural markets," he added.

Through the partnership, customers can also avail of higher loan to value, up to 90 per cent of on-road funding, and opt for longer repayment tenure.

With Maruti Suzuki's vast network of 3,086 new car retail outlets across 1,964 cities and towns and Cholamandalam Investment & Finance Company's extensive branch presence across the country, the offer is expected to benefit many customers, the statement added.

Last month, Mahindra & Mahindra announced a faster than Pizza scheme in order to promote its vehicles.  

Also Read: In-Depth Coronavirus coverage