Mumbai, August 25, 2006: Tata Motors has set up a new subsidiary for its vehicle financing operations. The new entity, TML Financial Services Ltd. (TMLFSL), is a 100% 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. 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% increase over Rs. 3400 crores in the previous fiscal. In 2005-06, Tata Motorfinance accounted for 23.8% 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% increase compared to 67,356 vehicles in 2004-05. Refinance business grew by 110%, while CEQ business grew by 165% in 2005-06. |
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