Commercial vehicle major Volvo Eicher today announced an agreement with Magma Fincorp with a view to boost its financing efforts. While on the one end it will give Magma another big opportunity to raise its top-lines by leveraging from the affordable yet efficient products from Volvo Eicher, on the other end it will give the latter the advantage of the reach that Magma has in the rural parts of the country.

In fact, 68% of the total business that this retail financing company generates comes from the rural areas. "It will give us an opportunity to reach to the individual consumers as against our earlier focus on mostly banking B2B clients," explains Siddhatha Lal, Managing Director, Volvo Eicher Commercial Vehicles. However, the agreement is not exclusive to either party.

Lal further added that the company is on its way to execute the strategies that will start showing its results in a couple of years to come. On the other End, Magma's MD Sanjay Chamria revealed the fact the retail financing firm is today managing an asset base of Rs. 9390 crore.