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.
CAclubindia
