New Delhi, June 16 :
New Delhi, June 16:
Maruti Udyog Limited is consolidating its presence in the 'non-car' businesses. After establishing its presence in auto finance, pre-owned cars and auto insurance, it is heading strongly into N2N sector-the business of lease and fleet management for the big corporate houses.
While its first customer for lease and fleet management was Gas Authority of India Limited (Gail), Maruti has recently closed deals with Doordarshan, Singer India Ltd, Reckitt Benckiser, Dupont and Sona Koyo-the OEM suppliers for Maruti.
'These companies need a range of cars right from the Maruti 800 to the Baleno, as cars have to be provided to senior executives and general managers in a company. Without making a big investment of buying the cars, the company can make a monthly payment for chauffeur-driven services at their doorstep,' Maruti officials said.
Maruti is, however, not ready to lose out on the booming business of fleet cars. Its N2N drive not only targets corporate houses, but is also ready to offer the services for fleet operators against the same conditions -acquire, maintain and even dispose of the cars.
'Currently, companies have to acquire cars by paying in cash at an aggressive interest rate. Maruti will also offer them operating and financial lease options. For a certain EMI, companies can use the vehicles over a 3-4 year period. For financial lease to a company, the residual value considered for the car will also be competitive,' sources said.
'This is a deal that suits companies as more than the money it is free of any other hassles like getting insurance, regular servicing and a certified driver against a particular payment per month. Moreover, we also have the option to change the vehicle after a period of three years if it does not suit us,' Doordarshan sources said.
Market sources said Doordarshan had ordered around 100 units of the Esteem for its use.
Globally, companies outsource fleet management to professional service providers, thereby achieving substantial cost savings and efficiency advantages through economies of scale. In the US, 70 per cent of new cars are purchased through leasing and 90 per cent of new car sales are through exchange schemes.
'Benefits to Maruti, through this scheme are great. A leasing product would definitely help push corporate sales of new vehicles,' company sources said.