Tata Motors and Bajaj Finance forge partnership to enhance dealer financing options

In a significant move to enhance financing options for its dealers, Tata Motors Passenger Vehicles Ltd. (TMPV) and Tata Passenger Electric Mobility Ltd. (TPEM), subsidiaries of Tata Motors, India‘s premier automotive manufacturer, have partnered with Bajaj Finance, a component of the prominent Bajaj Finserv Ltd. This collaboration is designed to extend advanced supply chain finance solutions to TMPV and TPEM’s network of passenger and electric vehicle dealers.

The memorandum of understanding (MoU) for this partnership was signed by Mr. Dhiman Gupta, Chief Financial Officer of Tata Passenger Electric Mobility Ltd. and Director of Tata Motors Passenger Vehicles Ltd., and Mr. Siddhartha Bhatt, Chief Business Officer of Bajaj Finance Ltd. This alliance will leverage Bajaj Finance’s extensive reach to facilitate easier access to funding for the dealers of TMPV and TPEM, with minimal collateral requirements.

Mr. Dhiman Gupta expressed his enthusiasm about the partnership, stating, “Our dealer partners are integral to our business, and we are happy to actively work towards solutions to help them in ease of doing business. Together, we aim to further grow the market and offer our New Forever portfolio to an increasing set of customers.” This partnership is seen as a strategic move to strengthen the dealers’ ability to access necessary working capital.

Tata Motors and Bajaj Finance Partner to Provide Enhanced Financing to Auto Dealers

On the other side, Mr. Anup Saha of Bajaj Finance highlighted the goal of the partnership, “Through this financing program, we will arm TMPV and TPEM’s authorized passenger and electric vehicle dealers with financial capital, which will enable them to seize the opportunities offered by a growing passenger vehicles market.” He emphasized the potential impact of this collaboration on enhancing the growth of the automotive industry in India.

TMPV and TPEM are known for their pioneering efforts in the Indian automotive market, particularly in the Internal Combustion Engine (ICE) and Electric Vehicle (EV) segments. Their “New Forever” philosophy has led to the introduction of market-leading products that have received widespread consumer appreciation.

Bajaj Finance stands as one of India’s most diversified Non-Banking Financial Companies (NBFCs), with a presence across lending, deposits, and payments sectors, serving over 83.64 million customers. As of March 31, 2024, the company’s assets under management were reported at ₹3,30,615 crore.

This strategic partnership between Tata Motors and Bajaj Finance is expected to not only provide robust financial backing to dealers but also stimulate growth in the automotive sector by enhancing the availability and ease of obtaining capital. Such collaborations are pivotal in supporting the expanding market for both conventional and electric vehicles in India.