BMW financial arm starts India business

German luxury car maker BMW today introduced its financial services business in India with an investment of about Rs 230 crore to serve the credit needs of retail customers, fleet owners and dealers.

Georg Bauer, chief executive officer, BMW Group Financial Services, said: “India has positioned itself as one of the fastest growing economies. We are the first foreign and premium automobile company to open a financing arm in India. We will have the first mover’s advantage”.

Adding: “We are investing $50 million this year. Next year, we are expecting we would have to bring in more funds.” He declined to specify how much more capital the company planned to bring into the country.

BMW received the certificate to operate as a non-banking financial company in June. BMW Financial Services in India is a wholly-owned subsidiary of the BMW Group.

BMW India Financial Services Managing Director and CEO Sanjiv Shah said the company would provide services in three areas — retail finance, commercial (dealer) finance and insurance solutions. Insurance solutions will be offered in association with Bajaj Allianz.

The financing arm will offer its solutions to customers buying other manufacturers cars also. We will finance both new and pre-owned cars at 8.75 per cent interest rates. However, there is a possibility to offer some models at a rate lower than this, Shah said.