GMAC Financial Services has entered into a joint venture with Twentieth Century Finance Corporation Ltd, to provide financing and leasing services for motor vehicles in India. GMAC Financial Services is a fully owned subsidiary of auto major General Motors.
The new joint venture, GMAC-Twentieth Century Finance Corporation Private Ltd (GMAC-TCFC), will offer retail and wholesale financing, leasing and other related services to motor vehicle dealers and their customers in India. The company will be headquartered in Madras.
GMAC-TCFC will offer its services throughout TCFCs branch network which currently numbers over 50. It will finance motor vehicles of all brands.
The majority stake in the joint venture will be held by GMAC with 51 per cent stake, and the remaining 49 per cent will be held by TCFC.
GMAC will invest Rs 20.4 crore and TCFC will invest Rs 19.6 crore as initial capital.
GMAC has received approval for the investment from the Foreign Investment Promotion Board (FIPB).
Moreover, it states that the Reserve Bank of India (RBI) has indicated that they have no objection to issuance of shares to GMAC. Rainer Knippschild will be heading the joint venture in India as managing director.
