With the two-wheeler industry feeling the heat of continually slowing sales in a dampened economy, OEMs are exploring new strategies to win over new buyers and influence consumers.
Honda Motorcycle & Scooter India (HMSI), which is targeting semi-urban and rural India to drive up sales, has tied up with Cholamandalam Investment & Finance Co for offering retail finance. What will help is Cholamandalam’s strong nationwide presence with over 1,000 branches, most of them rural and semi-urban areas, and a base of a million.
Earlier thus week, HMSI inked a Memorandum of Understanding (MoU) for a nationwide retail finance partnership with Cholamandalam Investment & Finance Company. The MoU was signed by Yadvinder Singh Guleria, senior vice-president – Sales & Marketing, HMSI, and Ravindra Kundu, president and Business Head - Vehicle Finance, Cholamandalam Investment & Finance Company.
Elaborating on HMSI's latest two-wheeler retain finance partnership, Guleria said, “The increase in two-wheeler ownership cost after the recent insurance premium hike and new brake regulations is resulting in increased percentage of new customers availing retail finance to purchase two-wheelers. We believe that consumer shift towards retail finance will accelerate even more in the coming year. To facilitate convenient and affordable purchase options for our customers, we are pleased to announce partnership with Cholamandalam.”
Honda customers now get extra savings of Rs 6,000 on an average retail finance loan through Cholamandalam Investment and Finance. Extra benefits include an attractive interest rate, minimum down payment of Rs 2,999, loan up to 97 percent of two-wheeler value, zero processing fee, extended repayment period of up to 36 months and low EMI scheme as per customer eligibility.
According to Cholamandalam Investment and Finance Company's Ravindra Kundu, “This partnership will give us a strong foothold in the mass two-wheeler financing space. With our over 1,000-strong branch network across semi-urban and rural markets, we will be able to cater to all customer segments and synergize well, thereby mutually benefitting both the organisations.”