News: Tata Motors sets up vehicle financing company

(PTI 25/08/2006) Mumbai - India's leading automobile manufacturer Tata Motors Ltd has set up a new subsidiary to support and enhance the company's vehicle financing operations.

The new entity, TML Financial Services Ltd (TMLFSL) would function as an NBFC (Non Banking Finance Company), for which it has received the necessary approval from the Reserve Bank of India.

In a filing on the Bombay Stock Exchange, Tata Motors said TMLFSL, a 100 per cent subsidiary, would support the vehicle financing activities of Tata Motorfinance.

The overall vehicle financing done by Tata Motors' auto financing arm (Tata Motorfinance) in the year 2005-06, was about Rs 5,500 crore, a 60 per cent increase over Rs 3,400 crore in the previous fiscal.

Tata Motorfinance also accounted for 23.8 per cent of the company's domestic sales in 2005-06.