Daimler mulls fin services arm

German automaker Daimler AG is planning to set up a financial services arm in the next 24 months in India. The new company will finance Daimler’s dealers and customers across the country.

Marc Llistosella, chief executive officer and managing director, Daimler India Commercial Vehicle, said,

“We are planning to tie up with various organised financial institutions including banks and NBFCs. We are also thinking about setting up our own financial arm over the next two years in India.”

The company is targeting customers, mainly from Tier II and III cities. “We want financing options for our prospective customers in place by the time we launch our products in the market. Daimler Financial Services is obviously one of the options,” he said.

The company has been around for over a decade in the country, since the time it launched its car joint venture with Tata Motors. Today, it has moved on to trucks and buses and is planning to set up a Rs 4,400 crore truck manufacturing facility at Oragadam, 40 km from Chennai. It is planning to roll out first truck from this facility in 2012.