Audi and Daimler to add a finance arm

Looking at the exponential growth in the luxury and passenger car segment many global players like Mercedes-Benz, BMW and Audi are investing high in the Indian auto market. All the luxury car manufacturers are following aggressive market strategies to resist the cut throat competition prevailing in the market. Among the innovative marketing plans, many companies have established a separate financial arm to provide the buyers with easy financing schemes. Following the trend next in line we have Audi AG which is the luxury unit of Volkswagen AG, which is heard to come up with a unique finance arm for the Indian users.

If we look at the other companies which have followed the same strategy to improve sales, we have BMW which was able to register its name as the largest luxury car seller in India last year. As per the reports, Audi will come up with this separate entity in the early days of running month which shows the keen interest company has for the Indian auto market.

Addressing the issue, Mr. Michael Perschke who is the head of the Ingolstadt, German car manufacturer’s India unit, commented early this month that with the lucrative financing facilities to the buyers, company can reach an increase in dales by 50 per cent as against last year which equals to 4,500 umits in 2011.

As per the reports, Perschke same as Daimler AG has commented that it will soon start with its financing arm which will help the customers get reasonable car loans. The financing  institutions will also take good interest in the schemes because of the rising interest rates in the industry. In the month of October, the German major BMW also established its finance arm in the Indian auto market which helped the company to boost its sales.

As per the reports a hike by 60,000 units will be observed in the year 2017 as against 15,000 units in last year as result of rising incomes and economic growth. In the period of April and December least year, 12,114 units were sold by Audi, Daimler and BMW together which amounts to a jump of 86 per cent as against the same period in last year.

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