BMW India to set up financing arm

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)

04 September 2009  

 

 

 

 

 

 BMW, which has maintained its lead in the premium segment of passenger cars over compatriot Mercedes Benz all through this year, announced the launch of BMW Financial Services India.

 

 

This wholly-owned subsidiary of BMW will offer finance for retail customers and multi-make customers, financing for fleet owners and commercial financing for BMW dealerships and multi-make dealerships.

 

 

 

 

 

It would become fully operational by mid-next year and will also offer insurance solutions to customers. Till now, the company was operating as a part of BMW India with three business lines: retail finance, commercial finance for the BMW India dealerships and providing insurance solutions. Now, it has applied for a license to become an NBFC.

 

 

Speaking to reporters, BMW India president Peter Kronschnabl said the company already has 40% share of the luxury car market in India, up from 9% in 2006. He said the financing subsidiary will see an investment of $50 million over two years.

 

 

BMW, the world's biggest maker of luxury cars by sales, has been assembling its 3-Series and 5-Series range of sedans in India at Chennai in the southern state of Tamil Nadu since March 2007.

The company imports and markets the 6-Series and 7-Series range of sedans as well as the X3 and X5 sport-utility vehicles.