BMW India to Start NBFC for Car Finance !
Posted on September 4th 2009Welcome back!
Luxury car manufacturer BMW India has declared its plans for setting up the Non-Banking Finance Co.(NBFC) in the country by 2010. It will be named as BMW Finance Services (BFS), will be 100% subsidiary of BMW Group, Germany.
The BFS will facilitate finance for its cars for both retailers and fleet operators. Presently, BMW India has its financing branch in India that offers the same utility in association with some banks like Bajaj Allianz & HDFC for vehicle insurance.
So far it was working as a division of a BMW India, but soon it will be a separate company.
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.
- Mr. Peter Kronschnabl (President of BMW India).
BMW India had just 9% market share of luxury car market by 2006-end. By 2009, share has improved to 40%. The company aims to invest USD 50 millions in financing subsidiary over the next 2-years. It is currently producing 3- and 5-series cars at its Chennai unit.
By editor in Auto Finance, Auto India News, Auto Industry News, BMW
kassim jamal responded on 04 Sep 2009 at 7:27 am #
chennai is getting a larger piece in the indian automotive pizza!
check this out http://indianautotalk.com/?p=406