Daimler Financial Services embarks on ambitious growth path in India

Daimler AG today announced the official launch of its Financial Services unit in India. Headquartered in Chennai, Daimler Financial Services India is a 100% subsidiary of Daimler AG.“Two out of five Mercedes-Benz cars and every fourth commercial vehicle of the Daimler group worldwide is financed or leased by Daimler Financial Services. We intend to replicate this success story in India as soon as possible”, commented Mr. Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG. “Daimler Financial Services aims to reach a contract volume of USD 500 million in India in five years”, he added.

Daimler Financial Services operates in 40 countries worldwide. With a contract volume of Euro 63.7 billion at the end of 2010, it is one of the world's largest automotive financial services providers for passenger cars and the world's largest provider of financing for trucks, buses and vans. Furthermore it provides automotive insurance solutions with a contract portfolio of more then 1.8 million contracts.

The new subsidiary in India is registered as Daimler Financial Services India Pvt Ltd. The company offers comprehensive finance, leasing and insurance products to customers and dealers of Mercedes-Benz cars in India under the brand ‘Mercedes-Benz Financial’ with immediate effect.

“In 2010, we sold more than 5.800 units in India, nearly double of our previous year’s sales figure. The luxury car market in India and Mercedes-Benz India in particular is on a dynamic growth path. With 75% of Indian car customers opting for vehicle finance, our financial services solutions and innovative products will be a catalyst in the purchase process. It is here that Mercedes-Benz Financial with seamless integration across all our dealerships will play a pivotal role”, says Mr. Peter Honegg, Managing Director & CEO of Mercedes-Benz India.

By 2012, Daimler’s truck brand BharatBenz is expected to be operational. Daimler Financial Services will then also support sales with financial services for BharatBenz. Daimler Financial Services has announced an initial investment of USD 50 million as part of its market entry and has put in place an electronic point-of-sales system to deliver speedy loan approval decisions and contract processing across all Mercedes-Benz dealerships. With 50 experienced industry professionals already on board and more to join soon, Daimler Financial Services India has set out for itself an ambitious growth path and a robust business outlook. Right from the beginning Daimler Financial Services India will offer a motor insurance product that was developed together with the strategic partner Bajaj Allianz.
 
Mr. Sidhartha Nair, Managing Director of Daimler Financial Services India, elaborated further: “We want to be the first choice provider of financial services products for our dealers and customers in India in the near term. Our one-stop solution for customers who buy a vehicle and demand finance and insurance in a quick and efficient manner will differentiate us from others.”