Japanese auto major Toyota on Wednesday announced the launch of its financial services in the Indian market with plans to invest Rs 260 crore initially.
Toyota Financial Services India (TFSI), a wholly-owned subsidiary of Toyota Financial Services Corporation, will start operations in Delhi and NCR and will be gradually expanded to other metros within this fiscal.
“We will start the retail business from June 5 through dealerships in Delhi, NCR and Bangalore. The initial investments for starting the financial services in Rs 260 crore,” said Mr Kazuki Ogura, Managing Director and CEO, TFSI.
Stating that India will be the 34th country where TFS will have operations, he said the company will look to gradually expand operations here.
“The aim is to reach to other metro cities within this fiscal,” said Mr Ogura.
TFSI will focus only on Toyota customers in India and the company will provide interest rates on loans comparable to the market, which is around 12-12.5 per cent, he added.
“Globally, we are not the least when it comes to interest rates. Yet, we have the best penetration rates in markets like US and China through our overall financial package,” Toyota Financial Services Corporation Executive Vice—President, Mr Eiji Hirano said.
“India is a market full of opportunities...by 2015 it is estimated that the car market here will touch four million units (a year). It is the right time to enter India at this moment,” he added.