Maruti and Magma in pact for financing cars

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      Maruti and Magma in pact for financing cars

      Sep 26, 2008
        Maruti and Magma in pact for financing cars
       
      Agreement in line with Maruti's strategy to sell more cars in the semi urban and
      rural markets, Magma strongholds
       
      Kolkata, September 20, 2006: Maruti Udyog Limited (Maruti), country's largest car maker today signed up with Magma Leasing Limited (Magma), country's fastest growing financial services company to finance Maruti cars across the country. The agreement was signed today by Jagdish Khattar, Managing Director of Maruti Udyog Limited and Sanjay Chamria, Managing Director of Magma Leasing Limited at a function held in Kolkata.

      Commenting on the occasion, Jagdish Khattar, Managing Director, Maruti Udyog Limited said: Maruti is determined to motorise India and tap the opportunity in rural and semi urban markets. We have the right products and the network for it. The missing link is car finance, which will now be provided by our partner, Magma. Their innovative systems and work practices, geared to rural and semi urban markets, will help us expand the base of first time car buyers

      Sanjay Chamria, Managing Director, Magma Leasing Limited said: "This is a big day for Magma Leasing as we sign the agreement with Maruti Udyog, country's market leader in automobiles. Magma specialises in financing new and pre-owned vehicles in the semi urban and rural areas which is the fastest growing market in the country. Magma will finance the entire range of Maruti cars through its own network. With the imminent merger of Magma and Shrachi Infrastructure Finance, the company will phenomenally grow its reach to increase financing Maruti cars in the hinterlands which is Maruti's focus area now. With an increased reach through 146 branches, we will compliment Maruti's plans very well."

      Leveraging Magma's reach in semi-urban and rural markets
      Magma Leasing has a strong infrastructure in semi urban and rural India. Apart from own 68 offices in 16 states; the company has presence in over 1000 marketing clusters through channel partners. Maruti's recent thrust on 'C' and 'D' segment towns is already catered by Magma. Infact in the semi-urban and rural markets to which Magma majorly caters, it is already one of the biggest financers of Maruti vehicles.

      Magma- SIFL merger to add strength to the agreement
      With the recent announcement of a merger of Magma and Shrachi Infrastructure Finance, the merged entity will provide a great opportunity to Maruti Udyog in terms of further deeper reach and greater volume. The merged entity will finance Maruti vehicles from 146 branches, almost evenly distributed between the regions with stronger access to north and south, the biggest markets for Maruti's vehicles.