Hindustan Motors and United Bank of India form an alliance for vehicle financing

Hindustan Motors has signed a deal with United Bank of India (UBI) to effect easier and time bound vehicle financing schemes to their customers. UBI will offer finance upto Rs.10 lakhs collateral free loans to Hindustan Motor’s customers at 10% interest. This scheme will be offered from all 1690 UBI branches across the country.

The deal not only includes easy and convenient financing for purchase of vehicles but also other preferential services exclusively for Hindustan Motors’ customers. This deal is also expected to benefit Kolkata golden yellow taxi business segment. Dignitaries of both Hindustan Motors and UBI were present on the occasion of signing of a Memorandum of Understanding between the auto manufactures and one of the leading banks in the country which has been in close association with Hindustan Motors since the past 40 years.

Hindustan Motors and UBI hold special affinity for each other both being among the oldest of business institutions with headquarters in Kolkata. By entering into this joint agreement, both parties feel that they will be mutually benefitted and will be able to reach higher limits backed by each other’s strengths. Availing of finance by HM customers will now be done in the least amount of time with minimum efforts or lengthy documentation.

In the image above, Hindustan Motors Ltd. Managing Director & CEO, Mr. Uttam Bose, (left) exchanging MoU documents with United Bank of India’s Chairman and Managing Director, Mr. Bhaskar Sen, in Kolkata on Wednesday (September 19, 2012).

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Hindustan Motors inks alliance with United Bank of India

Ensures convenient and smooth vehicle financing facilities for its customers

KOLKATA, September 19, 2012: Hindustan Motors Ltd. (HM), India’s pioneering automotive major, today signed a deal with United Bank of India (UBI), country’s leading nationalized bank with its headquarters in Kolkata, in a bid to provide easy and trouble-free financing facilities to its customers. The tie-up entails collateral-free loan up to Rs. 10 lac and other preferential services exclusively for HM customers from UBI. Buyers of HM products will be able to avail of retail finance support with just 10 per cent buyer margin payment from 1690 branches of the bank spread across the country. Although the alliance will benefit HM customers countrywide, the move is expected to be of immediate assistance to Kolkata golden yellow taxi business segment.

A memorandum of understanding (MoU) was signed here today by HM’s Uttarpara unit Financial Controller, Mr. Dibyendu Chatterjee, and UBI’s General Manager, Mr. Debashish Mukherjee. Also present on the occasion were HM’s Managing Director & CEO, Mr. Uttam Bose, UBI’s CMD, Mr. Bhaskar Sen, UBI’s Executive Directors Mr. Deepak Narang and Mr. Sanjay Arya, HM’s COO & SBU Head (Uttarpara & Pithampur), Mr. Ramesh Vishwakarma, and senior functionaries of both the organizations. A few HM dealers also attended the function.

Speaking on the occasion, HM’s MD, Mr. Uttam Bose, said, “The retail financing tie-up with United Bank of India is yet another evidence of HM’s customer-centric approach to business. This association will help us reach out to a wider customer base with speedier, smoother and competitive finance options provided by UBI. Belonging to the elite group of oldest business institutions headquartered in Kolkata, HM and UBI, in a way, share a common lineage. We strongly feel that the deal will be mutually beneficial and help us scale new heights by leveraging each other’s strengths.”

The CMD of United Bank of India, Mr. Bhaskar Sen, commented, “Our bank’s ties with Hindustan Motors date back to 1968. We have been together in both good and bad times. I expect this MoU to further strengthen our relationship. I look forward to more such opportunities to engage with HM. That will help both the organizations.”

UBI officers have already started processing finance applications by customers at Hindustan Motors’ dealerships.

About Hindustan Motors Limited

Hindustan Motors Limited, the flagship venture of the multi-billion dollar CK Birla Group, was established during the pre-Independence era at Port Okha in Gujarat. Operations were moved in 1948 to Uttarpara in district Hooghly, West Bengal, where the company began the production of the iconic Ambassador. Equipped with integrated facilities such as press shop, forge shop, foundry, machine shop and aggregate assembly units for engines, axles etc, the company currently manufactures Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, CNG and LPG variants) in the passenger car segment, light commercial vehicle 1-tonne payload mini-truck Winner 1.5 XD PLUS (diesel) and Winner 1.8 XD PLUS (CNG), and auto components at its Uttarpara plant. The company also runs operations at Pithampur near Indore in Madhya Pradesh where it produces both variants of Winner.

Hindustan Motors entered into technical collaboration with Mitsubishi Motors Corporation of Japan in 1998. Under this license, HM manufactures/markets premium Mitsubishi passenger vehicles from its third plant situated at Tiruvallur and office in Chennai in Tamil Nadu. Lancer was the first Mitsubishi vehicle to be introduced in India by HM in 1998 and it was followed by Pajero (2002), Cedia (2006), Montero (2009), Outlander (2010) and Lancer Evolution X in 2010. Special edition variants of some of these vehicles were also launched in between. Pajero Sport, which was launched on March 12, 2012, is the latest member of the HM-Mitsubishi group of vehicles in India.

Hindustan Motors is committed to core values of quality, safety, environmental care and holistic customer orientation.