TVS Motor Company, the country's third largest two-wheeler maker, has joined hands with IndusInd Bank for providing financial support to the former's dealers.
The automaker has entered into an agreement with the private sector lender to provide 'structured' inventory funding to the dealers of TVS Motor Company.
"While this tie-up will help the bank to escalate its realm of trade, it will enable TVS Motor Company to beef up its backward integration programme. This business initiative will further strengthen IndusInd's position in the vehicle finance space," TVS and IndusInd said in a joint statement.
"Our dealers will benefit as they will have access to ready finance from IndusInd Bank to meet their working capital requirements in the current market conditions," TVS Motor Company President (Marketing) H S Goindi said.
This tie-up opened out new avenues of cooperation, including consumer finance arrangements for two-wheelers, he added.
"There is an increased need for financing in this sector, and now is the time to demonstrate this support. The dealer financing model fits well with financing of the manufacturer and the consumer segment," IndusInd Bank Head (Transaction Banking) Ramesh Ganesan said.
