Tata Motors is all set to introduce a first of its kind venture with State Bank of India. The bank and Tata Motors are forging a strategic alliance to avail loans for the buyer’s of world’s cheapest car.
According to this unique strategy, the Nano dealers will accept only SBI cheque towards payments for Tata Nano. Only State Bank of India will avail loans for Tata Nano and those availing loans will have to issue demand draft of SBI in favour of Tata Motors.
An official report regarding such an alliance is still awaited. However, well-placed company sources state that the final negotiations for terms and conditions of such an alliance are already in the process. Tata Motors is looking to exploit the well placed network State Bank of India and its seven associate banks. SBI currently has 11000 branches across the country and the seven associate banks have 2000 more branches.
Since Tata Motors aims to make the Nano as the common man’s car, SBI was the best choice due to the deep penetrating network even in rural area. This means that Nano will be well within the reach of even the rural customers.
The auto industry across the globe now eagerly awaits the world’s cheapest car. Tata Motors shifted its manufacturing base from Singur, West Bengal to Sanand, near Ahmedabad after the violent protests from agitated farmers in Singur.
