Hyundai introduces EMI assurance scheme for new car purchases

• Programme offers coverage of car loan EMIs for three months in case of employment loss.
• Benefits only available for sales from May 4-31, 2020.
• Scheme available for all Hyundai models, except the Creta, Elantra, Tucson and Kona EV.

In the third phase of the nationwide lockdown, the central government has eased off certain restrictions in an effort to get the economy going, especially in areas that are least affected by the pandemic. Though the new set of guidelines might enable players in the auto industry to achieve some semblance of normalcy by bringing production and sales channels back online to a certain extent, weak consumer demand is a prospect that could pose significant hurdles for the carmakers. India’s second-largest passenger vehicle manufacturer, Hyundai, is attempting to address the issue and raise customer sentiments through a novel programme targeted at reducing the risk of defaulting on car loans in these uncertain times.

Dubbed the ‘Hyundai EMI Assurance Program’, the scheme essentially aims to cover up to three iterations of car loan EMIs in the event of the customer losing their employment due to “poor financial health, acquisition or merger of (his employing) company or due to any applicable laws.” Hyundai has partnered with auto insurance firm, Shriram General Insurance, for extending these benefits on car purchases made from May 4-31, 2020.

Additionally, the scheme is applicable on the purchase of all Hyundai models – except the Creta, Elantra, Tucson and the Kona EV – for owners working in private organisations only. The permitted EMI limit has been pegged at a maximum of Rs 50,000. The offer of a three-month EMI waiver is also only valid for a period of one year from the date of vehicle purchase, excluding the first three months.    

Hyundai hopes that such a programme will boost confidence and help it convert prospects into actual customers of the brand. Other measures that the company has taken to attract buyers include establishing sanitisation guidelines for its dealer network and creating a ‘Click to Drive’ online sales portal to promote a contactless sales process.