Honda Cars ties up with banks to limit demonetisation impact

Japanese car maker's arrangement with 3 leading banks includes ex-showroom and on-road funding for its various models

In order to limit the adverse impact of demonetisation on car sales, Honda Cars India has tied up with HDFC, Axis and ICICI Bank to provide up to 100% loan facility to its prospective customers.

The Japanese car maker's arrangement with the three leading banks includes ex-showroom and on-road funding for its various models.

"In the wake of demonetisation of 500 and 1,000 rupee notes, there will be a big effect on the overall car buying process and the cash component buying is expected to go down. Also, the margin money contribution will be affected for all customers," HCIL Senior Vice-President Sales and Marketing Jnaneswar Sen said.

To ease deal closure and give comfort to the customers, the company has negotiated 100% on road and ex-showroom funding deals with HDFC, Axis and ICICI Bank, he added.

The collaboration with the banks is intended to facilitate the car buyers in the currently prevailing circumstances, the company said.

"The collaborations would facilitate both the salaried, and the self-employed individuals and would cover all the models in the HCIL line-up and can be availed at all Honda dealerships across the country," it added.

The special retail finance offers from ICICI Bank include loans up to 100% of ex-showroom prices of the models and 90% of the on-road prices.

The offers from HDFC include loan value equivalent to 100% of on-road prices of all Honda cars (except Honda CR-V) while Axis bank is offering up to 100% on road funding for 96 months at a salary of Rs 25,000 for all central government employees and beneficiaries of the pensioner scheme (under 7th pay commission).

HCIL sells a range of vehicles including Brio, Jazz, Amaze, Mobilio, City, BR-V and CR-V.

READ OUR FULL COVERAGE ON THE MODI GOVT'S DEMONETISATION MOVE