BMW to enter in car-financing business in India

BMW India, a subsidiary of Germany based leading car maker, has said that it is planning to start a new car finance business in India by June  this year. The company is planning to invest heavily (about Rs 220 crore) for expansion of its non-banking finance corporation (BMW-NBFC), in the period of next 2 years.

Mr Peter Kronschnabl, BMW India President, told to reporters that company sees a tremendous potential in the Indian market, especially on the car finance segment. BMW plans to invest over USD 50 million in the next two-years to set up offices and start operations of BMW-NBFC, he was talking at the occasion of launch of new BMW 5 Series model in India. The company plans to start the NBFC business by June this year, Kronschnabl added.

With this, the company is also has plans of entering into the new business of car leasing, buy-back and financing used car. Mr Kronschnabl also added that there is a huge scope in the Indian market and company is aiming to cross the 11,000 mark, in the sales of its luxury cars in India. With launching the new BMW 5 series the company is all set to grow high, as the BMW 5 series accounts for 50 per cent of the company's global sales.