Tata Motors sets up a new arm for its vehicle finance operations
Mumbai, Aug 25 (UNI) Tata Motors has set up a new subsidiary for it's vehicle financing operations christened TML Financial Services Ltd (TMLFSL) to function as a non-banking finance company (NBFC).
Announcing this in a notice to the Bombay Stock Exchange, the company said it has received the necessary approval from the Reserve Bank of India (RBI) for its 100 per cent NBFC arm, which will support and enhance the vehicle financing activities of Tata Motorsfinance.
The overall vehicle financing done by the company's auto financing arm in the year 2005-06 was about Rs 5,500 crore, a 60 per cent increase over Rs 3,400 crore from the previous fiscal. In 2005-06, Tata Motorfinance accounted for 23.8 per cent of the company's domestic sales.
A total of about 1,13,000 contracts were booked, including refinance and Construction Equipment (CEQ), while 96,247 new vehicles were financed, a 43 per cent increase compared to 67,356 vehicles in 2004-05. Refinance business grew by 110 per cent, while CEQ business grew by 165 per cent in 2005-06.
UNI SN WD SKB1627