Maruti Udyog

Mumbai, July 8: Mahindra and Mahindra Financial Services (MMFSL) today signed an agreement with Maruti Udyog (MUL) to finance all its products.

Under this pact, MMFSL will leverage on its strong rural presence to provide retail finance for Maruti vehicles.

The agreement was signed by MMFSL's executive director (finance and corporate affairs) Bharat Doshi and MUL's managing direcror Jagdish Khattar.

After signing the agreement, Mr Doshi told Mediapersons here that, ''This agreement is a strategic decision aimed at drawing synergies between the two partners.'' Mr Khattar 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, MMFSL.

Their innovative systems and work practices, geared to rural and semi-urban markets will help us expand the base of first-time car buyers.'' According to the agreement, MMFSL will utilise the dealer network of MUL and its service mark Maruti Finance to market its auto loans. MMFSL will have the non-exclusive license to use Maruti Finance mark to sell its products. Both MMFSL and MUL can participate in joint promotion schemes, as mutually decided to promote and market auto loans for Maruti vehicles.

UNI