NEW DELHI: Maruti Suzuki India Ltd on Monday announced a partnership with Bank of Maharashtra to provide affordable financing options to dealerships for purchasing and maintaining vehicle inventory.
The bank’s “Mahabank Channel Financing” program will provide comprehensive financing opportunities to the company’s partner dealers across the country.
With the decline in vehicle sales for more than two years, the finances of car dealerships have taken a major hit. The blockages induced by the second wave derailed the recovery in sales observed since September of last year. Therefore, Maruti and other automakers have worked with banks to offer dealer inventory financing to stimulate wholesale demand.
“We are grateful that this collaboration with Bank of Maharashtra will provide new era banking and financial solutions to our dealer partners. There is a business requirement to recruit more financial partners for dealer inventory financing with long term business requirements and contingencies in mind, ”said Shashank Srivastava, Senior Executive Director, Marketing and Sales, Maruti Suzuki .
“The combination will allow us to further consolidate the business to provide one-stop-shop services in the context of supply chain finance. We are confident that this partnership will help take advantage of business opportunities in the MSME category and increase market penetration for MSIL, ”said AS Rajeev, Managing Director and Managing Director of Bank of Maharashtra.
The auto industry came under pressure from the first week of April, when Maharashtra began strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others have followed suit. Maruti Suzuki, Hero MotoCorp Ltd, Hyundai and others have stopped production or drastically reduced production.
Some, such as Bajaj Auto Ltd, however, continued to operate with limited capacity to meet export orders. With infections steadily declining, especially in northern and southern India, most automakers resumed operations from mid-May.
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