Volkswagen Finance gets non-banking licence

Volkswagen Finance has been granted a non-banking finance company (NBFC) licence by the Reserve Bank of India (RBI). The company now plans to make its first offering to the Indian market with three product lines - VW Finance, Skoda Finance and Audi Finance.

Customers can avail of financing options at any of the 164 dealer outlets of its brands Audi, Skoda and Volkswagen now. Volkswagen Finance is headquartered in Mumbai and is making an initial investment of over $24 million in India.

Commenting on the occasion, Joern Achim Kurzrock, chairman of the board of VWF India, said “India being one of the fastest-growing economies, VWF India wants to present itself in the Indian market as a mobility provider with products which fully respect the needs of VW, Skoda and Audi customers. Our focus is to support sales of our branded vehicles to customers. That’s why we are coming with 3 product lines - VW, Skoda and Audi finance - to focus on specific needs of each customer segment. Besides classical financing we are also introducing a bundled loan with insurance and maintenance packages and become a one-stop shop to support the sales of our brand vehicles in India”.
 
The RBI license will enable the company to offer customers of VW, Skoda and Audi cars the opportunity of a wide range of financial services including bundled 3-in-1 packages consisting of financing, insurance and maintenance.

With today’s announcement, Volkswagen Financial Services hopes to further strengthen its services and support the mobility needs of customers by offering loans and gain efficient market penetration.