Mumbai, Feb 16
TOYOTA Financial Services is planning to enter the Indian automobile finance market by 2007. According to Mr Shaun J. Coyne, Vice-President and Chief Information Officer, Toyota Financial Services, India was an emerging market with a lot of upside in the coming years.
"Toyota has been late getting into India (in the car finance market). But we already have a manufacturing facility in Bangalore. Generally, when we come in, we come in a big way," he said, without spelling on the details stating that their entry would be in 2007.
The Indian joint venture, Toyota Kirloskar Motors Ltd, expects to close the year 2005-06 with revenues of Rs 3,200 crore.
Conservative estimates indicate that the car finance market in India is pegged at about Rs 30,000-35,000 crore, of which 70 per cent is financed through banks and other intermediaries.
Asked about the prospects of the auto finance market in India, he said, "it is a fabulous market and there is a lot of upside to it as the middle class grows.
Banks such as ICICI Bank, State Bank of India are at present dominating the car finance market, but we still see great upside in this market."
On the sidelines of Nasscom 2006, Mr Shaun Coyne told
Business Linethat they are outsourcing their IT services work to three vendors - Accenture, Tata Consultancy Services and Wipro.
The three-year multimillion agreement that it had with TCS expired in October 2005 and this was renewed by them then, he said.
Speaking about the IT spending patterns of Toyota Financial Services, Mr Coyne said that it runs into hundreds of millions of dollars, without putting a specific number to it.
He, however, indicated that 50 per cent of the work is being offshored by them, primarily to India. The company, which currently outsources its IT operations to India may take a look at offshoring BPO work also, but has not taken any decision on it yet.
At the global level, Toyota Financial Services, which had revenues of $35 billion in 2004, expects to double its business in the next five years, largely driven by technology improvements and minimal increase in manpower.
"We feel that dependence on technology is absolutely critical, going forward and newer technologies such as Service Oriented Architecture and Web-enabled services will help us achieve that."