BMW Car Finance in India
BMW is setting up a non-banking car finance company in India by next year. The new company will be christened as BMW Financial Services which will be a 100 percent subsidiary of German BMW Group. It will facilitate finance for BMW cars for both retail and fleet operators. It will also facilitate finance for automobile brands as well.
"We have applied for an RBI licence to set up the NBFC. We plan to invest around $50 million, staggered over a period of two years," said Peter Kronschnabl, President, BMW India. BMW India already has its financing division in India which operates on similar lines in the Indian auto market in association with banks HDFC and Bajaj Alliance. Till now it was operating as a part of BMW India but now it has applied to become an NBFC.
BMW had only 9 percent market share of the luxury car market till 2006. Its share has increased to 40 percent by 2009. It expects $50 million investments in its financing subsidiary over a period of next two years. The company is currently assembling its 3-series and 5-series models at its Chennai plant.
[Via: cartradeindia]