NEW DELHI, Apr 30: German luxury car maker BMW Group today said it is increasing investment by over two-fold in financial services in India to Rs 530 crore this year in order to augment product and service offering in the country.
The financial services arm of the group, BMW Financial Services India, had previously announced an investment of Rs 230 crore in 2010.
“Much of this increase in investment is driven by the group’s recognition of India as an important market. This investment will help us enhance our product and service offering in India to further augment BMW India’s market leadership,” BMW Financial Services India Managing Director and Chief Executive Officer Dan DeChristopher told.
He said at present 40 per cent of the BMW products sold in India is financed.
BMW has not been reporting its sales number in India since the second half of last year due to competitive issues faced by the parent in Germany from EU authorities.
Stating that the financial services arm has made significant contribution to the group’s success in India, he said: “In less than two years, BMW Financial Services India has successfully established itself as the leading provider of customised financing solutions, individually tailored leasing plans.”
The company further said in 2012, BMW Financial Services India will employ more than 80 people at its headquarters in Gurgaon.
Commenting on the development, BMW India President Andreas Schaaf said: “The investment clearly reinforces BMW Group’s commitment to India.”
DeChristopher also said the financial services arm will also look to increase the volume of business from non-BMW branded products in India.
The financing for non-BMW branded products in India is done through another arm Alphera Finance.
“We have not focussed on this aspect before but going forward we will,” he said, adding at current the facility is available through two of the company’s dealers who also own showroom for other brands. (PTI)
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