Tata Motors sets up TML Financial Services Ltd
Kolkata, Aug 25: Tata Motors has set up a new subsidiary for its vehicle financing operations.
The new entity, TML Financial Services Ltd. (TMLFSL), is a 100 per cent subsidiary and will function as an NBFC (Non Banking Finance Company), for which it has received the necessary approval from the Reserve Bank of India, according to a company spokesperson.
TMLFSL will support and enhance the vehicle financing activities of Tata Motorfinance.
The overall vehicle financing done by Tata Motors' auto financing arm in the year 2005-06 was about Rs 5500 crores, a 60 per cent increase over Rs 3400 crores in the previous fiscal.
In 2005-06, Tata Motorfinance accounted for 23.8 per cent of Tata Motors domestic sales.
A total of about 113,000 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.