MAHINDRA Zimbabwe has partnered MBCA Bank and African Century to allow prospective owners to purchase vehicles at lower prices similar to the cost of an imported vehicle.
BY TATIRA ZWINOIRA
Mahindra Zimbabwe managing director, Sanjay Babbar told NewsDay at the launch of the new Mahindra KUV100 on Tuesday in Harare, that the partnership was to allow customers to purchase the vehicle, which is like a sports utility vehicle, at a low price and increase their market share.
“I think there will always be a demand for vehicles because we do not have a very vibrant driving market. What we would like to do is that we should not be bringing in second hand vehicles,” he said.
“We should be offering financial incentives for people to spend, maybe $200 a month, and have a new car. cars should be coming in and we must not be looking at importing second-hand cars.”
The Mahindra KUV100 is retailing at $18 000.
Babbar said African Century and MBCA had loan tenures of three and five years respectively.
MBCA Bank confirmed the partnership with Mahindra Zimbabwe to offer a financial payment scheme under the bank’s Vehicle and Asset Finance Scheme.
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A motorist can purchase a vehicle after paying an initial deposit of 20% and pay the rest over five years.
African Century business development manager, Fidelis Magumise said financing the vehicles was in line with their strategy to finance movable assets.
He said under their financial scheme, a motorist must pay a 20 to 30% deposit before paying the rest over three years.
Mahindra Zimbabwe is part of Indian multinational automobile manufacturing corporation Mahindra and Mahindra Limited.
The Mahindra group has over 100 assembling plants all over the world.
Babbar said they had spent about $500 000 to bring in Mahindra KUV100 vehicles to Zimbabwe.
He said they would be looking at setting up an assembling plant in the next two to three years in Harare.
“We have a current market share of 1% and we are hoping to increase that to 3% by the end of last year,” Babbar said.
In June, the Zimbabwe National Roads Administration reported close to 1,2 million vehicles were in the country.
