Ashok Leyland distributor Deluxe Trucks & Buses inks pact with Kenya Commercial Bank for vehicle financing, Auto News, ET Auto

New Delhi: Ashok Leyland’s authorized distributors, Deluxe Trucks, and Buses in Kenya on Wednesday signed a partnership with Kenya Commercial Bank to jointly promote the Ashok Leyland Brand of Vehicles. Kenya Commercial Bank (KCB) is the largest financial institution in the region offering an array of services.

With this partnership, Ashok Leyland customers will now be able to access flexible financing options in a deal from Kenya Commercial Bank. The partnership will see customers enjoy up to 95% financing with an extended repayment period of 72 months as well as a comfortable 60-day payment holiday.

In addition, customers will have the privilege to access an embedded tracking and insurance package and access to unsecured working capital of up to KES 3 million among other bank products available at the bank.

Also catered for are KCB SAHL Banking customers who under the Shariah-compliant banking model, will be able to purchase trucks from Deluxe Trucks & Buses at affordable rates.

Amandeep Singh, Head of International Operations, Ashok Leyland said, “Ashok Leyland Trucks and Buses has a wide future-ready portfolio in commercial vehicle categories ranging from 2.55 Ton GVW to 55 Ton GVW and buses suited for all applications. The Ashok Leyland range of vehicles offers the best-in-class mileage in all these categories. This partnership with KCB will enable customers to avail financing options to purchase Ashok Leyland commercial vehicles at industry best terms and conditions.”

Speaking during the event, KCB Bank Director of Corporate Banking, Esther Waititu added, “We are delighted to partner with Deluxe Trucks & Buses, for financing Ashok Leyland products. It is a reflection of our commitment to supporting key customers to derive value from their long-standing loyalty.”

On his part, Ameet Shroff, Managing Director, Deluxe Trucks & Buses E.A. said, “The partnership targets individuals, Small Medium Size companies, and large commercial businesses for flexible financing of up to 95% of the vehicle cost. Delivering uptime to customers is our key objective and we will ensure that our customers are continuously served with complete satisfaction.”

Deluxe Trucks & Buses E.A. Ltd, which is wholly owned by Simba Corp, was appointed the sole authorized distributor of the full range of Ashok Leyland brand of trucks and buses. The vehicles are locally assembled at Associated Vehicle Assemblers (AVA) which is also owned by Simba Corp.

The firm recently opened a modern sale, and service equipment center at Xylon Complex, located along ICD Road, Off Mombasa Road, Nairobi, in a move that will ensure that customers get access to specialized services post-purchase, given the rising demand for vehicles used by SMEs and MSMEs, it said.

Deluxe Trucks and Buses current network includes dealerships in Nairobi, Nakuru, Mombasa and Thika, and plans to appoint dealers in other major towns countrywide.

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The company reported a 111% jump in domestic sales of M&HCV to 7329 units in July 2022 up from 3473 units sold in July 2021. Meanwhile, the LCV segment recorded a 16% growth with 5386 units sold in the previous month as compared to 4656 units sold in the same month last year.

“I believe so because the pandemic and some of the uncertainties that were there globally are now all behind us. There is no reason why the commercial vehicle industry should not grow,” Ashok Leyland Whole Time Director and CFO Gopal Mahadevan told PTI in an interaction.

The company’s revenue from operations jumped to INR 8434.66 crore in Q1 FY23 compared to INR 4070.34 crore in the same period a year ago.