Bank schemes for Nano

Just as the Tata Nano promises value for money with its low pricing, so do the various schemes of banks which are the preferred lenders for the car. As the schemes are almost uniform in their charges and interest rates, quick and efficient service is perhaps what can help a bank score over its competitors.

The Nano loan schemes are led by public sector banks, with the big daddy, State Bank of India along with its associate banks setting the trend in terms of interest rates and down payment. Other PSU lenders include Central Bank of India, Union Bank of India, Indian Bank, Corporation Bank and Punjab National Bank. The private sector players include ICICI Bank and Kerala-based Federal Bank.

For SBI, a potential Nano customer is an employed professional drawing Rs 75,000 a year or a self-employed person making Rs 1 lakh a year.

SBI is offering a Nano booking loan product with a one-time upfront booking fee of Rs 2,999 for the base model (which has an ex-showroom price of Rs 1.2 lakh in Delhi), Rs 3,499 for the intermediate model (Rs 1.40 lakh) and Rs 3,999 (Rs 1.70 lakh) for the high-end model.

The eligibility criterion has been relaxed keeping in mind that the Tata Nano is designed to meet the demands of low-income customers, an SBI official said.

In case the customer is allotted a Nano, then the booking loan can be converted to a SBI Nano car loan. The loan would be provided up to a maximum of seven years at 11.75-12 per cent interest. The margin requirement for the loans would be 15 per cent. That is, for Rs 1 lakh loan, the customer would have to pay Rs 15,000 upfront to get the bank to give a loan for Rs 85,000.

In case of Union Bank of India, for the booking amount, the minimum down payment for the base model is Rs 2,950, for the second version it is Rs 3,459 and for the higher end version it is Rs 3,952.

If a customer wants to avail himself of a car loan for the Nano, the bank’s auto loans rate is 11 per cent for three years and 11.25 per cent for three to five years.

An official from the bank said, “We expect very good response from rural and semi-urban areas.”

Corporation Bank is also charging Rs 2,999 as down payment for the booking amount of the base model, Rs 3,744 for the second version and Rs 4,231 for the third version. The bank is offering 11 per cent in case the customer goes in for a car loan once he or she gets allotment.

At these rates, the monthly repayment works out to Rs 3,274 per lakh for a three-year loan, Rs 2,187 on a five-year loan and Rs 1,739 for a seven-year loan, said an official from the bank.

ICICI Bank is hoping to capitalise on its online booking facility through both the bank’s Web site and ICICI Direct.com, said Mr N.R. Narayanan, General Manager, retail loans, “We are very bullish about the Nano booking online as it offers huge convenience to our customers. ICICI Direct also has a lot of customers who log on for share trading,” he said. The bank offers car loans at 13.5 per cent for three to five years.

[SOURCE]

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While the government hopes the company would slip into the Nano site vacated by Tata Motors, it will also showcase other locations at Kalyani, Kharagpur and Haldia.

China’s First Automobile Works (FAW), in collaboration with Ural India, an Indo-Russian joint venture, wants to set up a Rs 1,500-crore automobile manufacturing unit in Bengal. And, the first vehicle to roll out of the plant in 2010 will most likely be a small car priced at a cool Rs 1.6 lakh.

A tie-up between Ural India, in which the state government has 11%, and FAW will be formalized through an MoU in the first phase. J K Saraf, chairman of Ural India and Ren Diansheng, vice-director of FAW, led the five-member delegation of the company that called on Bhattacharjee.

The company is expected to start manufacturing small cars and then go on to buses. “We plan to price the small car at Rs 1.6 lakh to keep it competitive,” Saraf said. However, Ural is yet to decide on the name of the car.

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With JLR’s combined sales, Tata’s overseas business will now cross its domestic passenger vehicle sales and Tata has clarified that JLR revenues will be consolidated into the balance sheet of the listed Tata Motors.

Ravi Kant also shared with NDTV that while for the Ford Motor Company, JLR was a very small part of its overall business, for Tata its a much larger division. So, the stress will be on growth of the two marques while maintaining their individual identities.

Tata Motors has come a long way since Telco began making heavy trucks introducing its first car at the turn of the century and today the most talked of car in the world, the Nano. With Jaguar and Land Rover – it enters a new arena it is not used to doing business in but it says its ready for the next step in its evolution.

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With plans to further consolidate its position in the big-car segment, Maruti Suzuki on Wednesday launched its new entry level sedan Swift DZire with an introductory price ranging from Rs 4,49,000 to Rs 6,70,000 (ex-showroom Delhi).

The DZire, the seventh model Maruti Suzuki has launched in the last three years, comes in both in diesel and petrol variants powered by 1.3 litre engines.

The petrol variant will cost Rs 4,49,000 to Rs 5,90,000 and the diesel Rs 5,39,000 to Rs 6,70,000.

“It has a special place in our product strategy. Millions of Indians own compact cars. With growing incomes and better lifestyle, many of them want to upgrade to a sedan. But on Wednesday, they are not able to find an entry level sedan that offers style, features and performance. The DZire offers all this, and at an attractive price,” Maruti Suzuki India Managing Director S Nakanishi said.

The DZire, which offers features, including integrated stereo, steering mounted audio controls, automatic climate control, power windows and dual airbags, has come as replacement of MSI’s earlier mid-size sedan Esteem.

It is being launched at a time when the company has managed to race past competition in the mid-sized sedan segment (A3) selling nearly 41,000 units in the April-February period of this fiscal.

While continuing to lead India’s small car market, Maruti Suzuki has emerged as the market leader in the A3 segment as well during 2007-08.

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The deal has taken almost nine months to finalise as both  Ford and Tata and their financiers sought to iron out issues seen as crucial to the future of the two British marques.  It is expected to cover long-term supply of engines to both brands from Ford.

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Japanese auto maker Suzuki Motor Corp (SMC) will launch a new ‘global car’ in India and locate its biggest production units in the country, company chairman Osamu Suzuki said in New Delhi on Tuesday.

The new car, referred to as a ‘global car’ by the company, would be made at Maruti Suzuki India Ltd’s (MSIL) plant near the capital. Suzuki owns 54.2 per cent stake in MSIL.

The car would be targeted primarily at the European market and is expected to be launched in the small car segment, officials said.

“In order to cope with the more intensifying competition, Maruti will make further investments in the field of not only manufacturing but also R&D (research and development) and sales,” Suzuki said.

Osamu Suzuki is currently on a three-day visit to India. He is expected to highlight the increasing significance of India, which is gradually emerging as one of the company’s most important markets after Japan.

“Both our plants (Gurgaon and Manesar in Haryana) are totally geared up to produce one million units a year by 2010, but our sales network needs to be strengthened which remains one of our weak areas,” Suzuki said, adding that the company is keen to invest over $1 billion in R&D in India.

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Swedish truckmaker Volvo AB reached a tentative deal with Indian automaker Eicher Motors Ltd. Monday to set up a joint venture that will combine the companies’ truck and bus businesses in India.

The two companies signed a letter of intent that requires Volvo to invest $275 million in the joint venture and transfer its existing truck dealer and service network valued at $75 million to the joint venture, Volvo said in a statement.

Eicher Motors will transfer its entire truck and bus operations, including its manufacturing plant in northern India, to the new company, the statement said.

“The parties will now initiate negotiations regarding a final agreement,” it said, adding any final deal would be subject to approval by regulators and shareholders of Eicher Motors.

“The transaction is expected to be completed before mid-year 2008,” the statement said. Under the deal, Volvo will directly own 45.6 per cent stake in the joint venture company and also acquire 8.1 per cent stake in Eicher Motors, it said. The joint venture will have about 2,300 employees.

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