India’s leading carmaker Maruti Suzuki has tied up with Muthoot Vehicle and Asset Finance (MVFL) to provide 100 per cent finance to customers buying Maruti cars. Tarun Garg, vice-president, sales, Maruti Suzuki and Geroge Alexander Muthoot, managing director, Muthoot Group signed a MoU (memorandum of understanding) recently.
This Muthoot Maruti Gold to Car scheme will provide customers 100 per cent financing on road for Maruti vehicles on the deposit of gold across Kerala. The vehicle would be funded by MVFL and the downpayment would be made by Muthoot Finance.
Tarun Garg, talking to a newspaper said, “This initiative has been launched with keeping in mind that a large segment of customers cannot arrange for an immediate down payment for a vehicle purchase.”
He added, "We are never satisfied. We aim for continuous improvements.”
George Alexander Muthoot said, “This would be a 'win-win' initiative for Muthoot, Maruti and the customers. The tie-up would benefit salaried customers, business profile customers, no income proof customers and NRIs with suitable guarantors.”
Currently, MVFL runs through a network of 39 branches spread across 13 districts in Kerala. The company has made lot of progress in financing used and new commercial vehicles, goods and passenger autos, tippers and earth moving equipment.
While this sounds very fancy wherein you deposit your gold ornaments and drive away in a car, this might not work across the nation. This marketing ploy seems tailormade for the southern region of India as the fascination towards gold in this part is much higher than anywhere in the country. How successful this scheme works out to be will be seen in a while, but it does sound interesting and we wouldn’t be surprised if this adds up to more sales for Maruti.