Mahindra to enter finance sector

Harshini Perera

Ideal Motors together with Mahindra and Mahindra Limited expect to enter into the finance industry in Sri Lanka establishing a finance company.

A team from Mahindra Finance Company will visit Sri Lanka to finalize the proposal shortly. They will apply for the licence from the Central Bank soon. The proposed financial company, Ideal Mahindra Finance Company will commence operations in the first quarter in 2011.

"The proposed financial company will cater to the rural Sri Lankan market by giving financial facilities for customers in rural areas", Ideal Motors Chairman Nalin Welgama told Daily News Business.

He said this joint venture will be strengthened by Rs 200 million investment. The main office will be located in Colombo but may have outlets in the rural areas as the company targets more customers in the rural areas.

Ideal Motors set up its showroom in Jaffna last month and the Vavuniya branch was opend in June this year. A high demand for three wheelers and Maxi trucks can be seen in Jaffna.

"We will soon be introducing Mahindra SUVs to Sri Lanka which will be suitable for road conditions in Sri Lanka," he said.

"Ideal Motors, a franchise of Mahindra and Mahindra vehicles in Sri Lanka, had a remarkable growth in three-wheelers and light trucks last year. Ideal Motors has sold 2,500 units of these vehicles which amounts to 30 percent of the total sales.

Ideal Motors will be introducing new products such as Mahindra heavy trucks and a bus in the middle of next year. A small light truck will also be introduced from January 1.