The Hindu Business Line : Toyota inks pact with ING Vysya on auto finance

TOYOTA Kirloskar Motor Private Ltd (TKML) and ING Vysya Bank have entered into a memorandum of understanding under which the bank would extend finance to buyers of Toyota vehicles at a competitive rate of interest.

The retain auto-finance facility will be extended up to 90 per cent of the `on-the-road' price of Toyota vehicles, which includes Qualis, the multi-utility vehicle and its luxury and premium passenger sedans, Corolla and Camry.

Announcing this at a joint press conference here on Friday, Mr K. Srikanth, General Manager (Finance) and Mr Shantanu Ghosh, executive Vice-President, ING Vysya Bank said that with both the automobile industry and the retail car finance growth registering phenomenal growth, the two companies decided to strike a strategic alliance to leverage on their strong brand equity and quality products.

Mr Ghosh said that the car finance set to increase at a compounded average growth rate of 10 per cent, "We are looking for leveraging on the strength of the bank's branches to expand our retail loan portfolio".

Kirloskar would give the bank access to greater high

networth individuals market, while allowing ING Vysya to make further inboards into auto finance, he said.

"Our retail lending grew by 20 per cent in 2004-05," he added.

On a question whether this would give an opportunity for ING Vysya to garner TKML's corporate account as well, Mr Ghosh said the MoU between the two companies had no such conditionality. But, he said, one line of business could lead to other.

TKML hopes to increase its product's reach through ING Vysya's branch networks, said Mr Srikanth.

"We are already leaders in our product segments across India, and we expect to strengthen our position through this tie-up," he said.

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