Entering damage-control mode following the demonetisation move by the Indian government, Honda Cars India (HCIL) has tied up with various private banks like HDFC, Axis and ICICI Bank to provide up to 100 percent loan facility to its prospective customers. This will include both ex-showroom and on-road funding for various models across its portfolio.
“In the wake of demonetisation of 500 and 1,000 rupee notes, there will be a big effect on the overall car buying process and the cash component buying is expected to go down. Also, the margin money contribution will be affected for all customers,” HCIL Senior Vice President Sales and Marketing Jnaneswar Sen said.
The collaboration with the banks is intended to facilitate car buyers in the currently prevailing circumstances, the company said. “The collaborations would facilitate both the salaried, and the self-employed individuals and would cover all the models in the HCIL line-up and can be availed at all Honda dealerships across the country,” it added.
The finance offer from ICICI features a 100 percent loan facility on the ex-showroom prices of cars and 90 percent on the on-road prices. On the other hand, the HDFC loan schemes include loan value equivalent to 100 percent of on-road prices of all Honda cars (except Honda CR-V). Elsewhere, Axis Bank is offering 100 per cent on-road funding for 96 months at a salary of Rs 25,000 for all central government employees and beneficiaries of the pensioner scheme.
Among the company’s offerings in India are the Brio, the Amaze, the Jazz, the City, the Mobilio and the CR-V, which are produced at its Greater Noida facility. The company has also re-entered the premium sedan segment by launching the Honda Accord Hybrid last month.