Car makers adopt e-payments to minimise demonetization effect

As a measure to tackle the slump in business post the Government of India's announcement on demonetization, various car makers have partnered with banks and third-party e-wallets to provide cashless transaction facilities to their customers.

Renault India is offering cashless transactions for new car customers as well as for those availing after-sales services. The company is offering new customers a choice to pay their booking amounts via PayTM and HDFC PayZapp e-wallets. Existing customers are also being given the option of paying through cheques, demand drafts, e-wallets, debit or credit cards and instant fund transfers for availing after-sales services. Additionally, the automaker has announced a 100% finance scheme for all its cars.

Nissan and Datsun are also offering similar cashless transaction facilities to customers. They are even providing free towing facilities for cars that are under warranty or extended warranty.

Honda has also announced its partnerships with HDFC, ICICI and Axis Bank for providing 100% finance options to prospective customers.

All these steps are being taken to give a slight push to the new car industry, which has been reported to have recorded a 30% drop in sales in the current month. The Federation of Automobile Dealers' Association (FADA) recently released a statement to all major OEMs, mentioning that the entire auto retail trade has come under severe stress post demonetization. FADA has urged vehicle manufacturers to reduce inventory at dealerships and partner with banks for financing options in order to provide added support to dealers.

Source: ET Auto