The global automobiles giant, Toyota Motors Corporation has launched its financial services arm in India. Toyota Financial Services (TFS) is expected to augment the sales of the company's cars in the country.
With an initial capital of Rs.260 crore, TFS would assist the customers in purchase of its cars, such as the Innova, and the Etios. Initially the services would be available only in Delhi/NCR and Bengaluru.
The company would also support the sales of Lexus, the luxury vehicles division of Toyota Motors which is supposed to be introduced in India next year.
"We may not always provide cheaper interest rates than banks, but where we hope to gain is the level of personalized service. We offer a quick approval process for loans, easy documentation and professionally trained executives", stated Mr. Kazuki Ogura, MD and CEO TFS India.
TFS plans to be a one stop shop for its customers in car purchase, providing comprehensive and customized financial products. The company would provide 100% financing, insurance funding would also be provided. On the business end, the company would also provide dealer financing and support for used cars business.
This is a surprising move, since most of the mass carmakers rely on NBFCs and banks to provide financial services.