MUMBAI - Tata Motors (NYSE:TTM) Passenger Vehicles Ltd. (TMPV) and Tata Passenger Electric Mobility Ltd. (TPEM), subsidiaries of the Indian automotive giant Tata Motors, have partnered with Bajaj Finance, a major player in India's financial services sector, to provide supply chain finance solutions to their dealers. This collaboration aims to facilitate easier access to funding for dealers of passenger and electric vehicles under Tata Motors' umbrella.
The memorandum of understanding (MoU) was signed by Dhiman Gupta, CFO of TPEM and Director of TMPV, and Siddhartha Bhatt, Chief Business Officer of Bajaj Finance. This strategic partnership is designed to leverage Bajaj Finance's extensive network to enable TMPV and TPEM dealers to obtain financial capital with minimal collateral requirements.
Dhiman Gupta expressed enthusiasm for the initiative, emphasizing the importance of dealer partners in Tata Motors' business and the company's commitment to assisting them in improving business operations. Gupta also highlighted the potential growth opportunities in the market for Tata's 'New Forever' range of vehicles.
Anup Saha, Deputy Managing Director of Bajaj Finance, echoed this sentiment, stating that the financing program will empower authorized dealers to capitalize on the expanding passenger vehicle sector. Saha also conveyed confidence that the collaboration will benefit the dealers and contribute to the growth of India's automotive industry.
Tata Motors has been at the forefront of the Indian automotive market with innovative products in both the internal combustion engine (ICE (NYSE:ICE)) and electric vehicle (EV) segments. Their 'New Forever' philosophy has led to the introduction of products that have resonated well with consumers.
Bajaj Finance, known for its diversified services including lending, deposits, and payments, serves a vast customer base of over 83.64 million. As of March 31, 2024, the company reported assets under management amounting to ₹3,30,615 crore.
This partnership, based on a press release statement, is expected to provide a boost to Tata Motors' dealership network by offering financial solutions that could enhance the dealers' ability to manage and grow their businesses effectively.
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