19 April, 2011
Tata Motors has entered into an agreement with State Bank of India (SBI) for providing channel financing facilities to the Tata Motors dealers. The bank will provide financing for both, the passenger vehicles and commercial vehicles range.
The dealers of Tata Motors will now have access to ready upstream finance from SBI to meet their working capital requirements in addition to their existing retail finance arrangements.
SBI ranks as an important retail financier for Tata Motors today and this tie up is a further step to achieve a holistic value chain support which will help the company achieve its growth aspirations, and improve the Bank’s retail penetration. SBI has evolved a new technology platform for achieving benchmark levels of service in Inventory Funding.
According to SBI, the Electronic Dealer Finance platform will provide best-in-class customer experience to the dealers, thereby effectively partnering Tata Motors in realizing the Company’s growth ambitions.
About Tata Motors
Tata Motors is India’s largest automobile company, with consolidated revenues of Rs. 92,519 crores ($ 20 billion) in 2009-10. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 5.9 million Tata vehicles plying in India, Tata Motors is the country’s market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world’s fourth largest truck manufacturer and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. (www.tatamotors.com)
About State Bank of India
State Bank of India (SBI) is India’s oldest bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits. SBI is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only public sector Indian bank to feature in the Fortune 500 list and offers the largest banking network to the Indian customer.