Toyota, the world’s second largest carmaker, has launched its financial services arm in India on Wednesday.

With an investment of Rs 260 crore, Toyota Financial Services (TFS) is expected to give a boost to the sales of its popular models such as the Etios and Innova through its own auto finance products. The initial coverage will be of the NCR and Bangalore markets.

TFS will also support sales of the Japanese auto major’s luxury brand, Lexus, which is expected to be launched next year.

“We may not always provide cheaper interest rates than banks, but where we hope to gain is the level of personalised service. We offer a quick approval process for loans, easy documentation and professionally trained executives,” said Mr Kazuki Ogura, MD & CEO, Toyota Financial Services India, said.

TFS will provide up to 100 per cent finance for its customers, insurance funding and dedicated products designed as per the car models. Dealer financing and the used car business will also be supported

Added Mr Sandeep Singh, Deputy Managing Director, Toyota Kirloskar Motor, “More investment will be needed as we expand the network to the rest of the country. Within this fiscal we will cover all the metro cities.”

The Japanese carmaker is also considering the launch of a car leasing arm, as part of the TFS business.

Toyota is among the first of the mass carmakers to launch a captive financing arm, as most rely on banks and NBFCs. In the last two years, more premium players such as BMW, Mercedes-Benz and the Volkswagen Group have launched such a division.

>roudra.b@thehindu.co.in

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