Daimler India signs MoU with Tamilnad Mercantile Bank for vehicle financing

Daimler India Commercial Vehicles (DICV), a wholly-owned subsidiary of Daimler AG, today signed a Memorandum of Understanding with Tamilnad Mercantile Bank (TMB) to provide financing solutions for BharatBenz trucks and buses, the CV manufacturer said in a release today.

The agreement was signed by HS Upendra Kamath, MD & CEO of Tamilnad Mercantile Bank and Arghadip Roy, deputy general manager and national head- Retail and Channel Finance, DICV along with Prabudass Ealumalai, senior manager, Retail Finance South, DICV.

Commenting on the partnership, Mr. Erich Nesselhauf, MD and CEO, Daimler India Commercial Vehicles said: "This is another important step to further strengthen the BharatBenz brand’s presence in Southern India. Tamilnad Mercantile Bank has a strong footprint where our dealers and customers are located in the region, with over 80% of the bank’s branches situated in semi-urban and rural areas. This makes TMB a perfect partner to support our dealers with fast and easy processes, as well as to provide our customers with competitive, tailor-made financing solutions for their new BharatBenz products.”

According to the CV manufacturer, Tamilnad Mercantile Bank has an aggressive strategy in the SME lending sphere and offers its customers’ multiple schemes to choose from.  Apart from Daimler’s own captive financing brand, BharatBenz Financial, the bank would become a key financing partner for BharatBenz products.

The CV maker reported a record growth in 2015, with domestic sales rising by 37 percent to 14,000 units. Following its market launch in September 2012, Daimler’s Indian truck and bus brand has introduced 20 products so far, with more to follow.

Commenting on another successful year of operations in the country Nesselhauf had said: “2015 has been another successful year for us. With our portfolio of modern trucks, we have powered ahead on our growth course domestically in India and in our export business. This success was made possible thanks to the excellent contributions of the entire team and our partners.”

DICV’s BharatBenz range of products witnessed good demand in the heavy-duty segment last year and the CV maker plans to introduce an entire family of special purpose vehicles in order to increase its market share in the segment.