Maruti Udyog [Get Quote] is leveraging its public sector legacy to tap potential customers in government undertakings.

The company is offering a special car finance package to the 1.5 million workforce of the world's largest employer, Indian Railways. It is also in talks with large undertakings such as Bharat Heavy Electricals [Get Quote] for similar schemes.

Sources said though the government holding in MUL has come down to around 18 per cent, prospective buyers still see it as a government company. "This misplaced notion may actually work in favour of roping in new customers from the public sector," said an industry observer.

Maruti's scheme covers its entire product range and is applicable to all grades of permanent employees of railways. The scheme will be floated in tenures of three, five and seven years and will carry rates of 7.5 per cent, 7.75 per cent and 8 per cent per annum respectively.

The rates offered to railway employees will be a full per cent or 100 basis points less than what SBI [Get Quote] offers to its regular rural customers. SBI offers differential rate of interest to its urban and rural customers with a difference of 0.5 per cent.

A Maruti spokesperson said, "Apart for a lower rate of interest, we will also offer cash discounts to railway employees. Since railway workforce live in colonies, we also plan to offer free check-up for cars sold under this scheme and also for existing customers of Maruti who work with the railways."

The spokesperson said around 50 locations across the country have been identified where railway employees live in large concentration. "The most challenging part of this scheme is operationalising it. Lot of effort has to go into communicating to railway employees about the scheme. Identifying large pockets railway staff is the first step in this direction," said a Maruti official.

The new scheme was actually an extended idea of what Maruti already has offered to teachers in the country.