BMW starts financing operation in India
BMW India has launched its financial arm in India with an investment of 230 crore rupees.
BMW Financial Services in India is a wholly-owned subsidiary of the BMW Group and has received Non-Banking Financial Company Status and would be able to provide finance to not only retail customers, but also fleet owners and dealers.
The rate of interest for both new and pre-owned BMW cars would be set at 8.75%, though the company might just provide lower interest rates on a few of its models to bolster sales.
Speaking to the media, BMW Group Financial Services Chief Executive Officer Georg Bauer said, “India has positioned itself as one of the fastest growing economy. We are the first foreign and premium automobile company to open financing arm in India. We will have first mover’s advantage.
According to Bauer, BMW expects the 230 crore initial investment to be exhausted by next year, when the company will bring in more capital to help bolster its operations in India.
