BMW to Foray Into Non-Banking Finance

Tuesday 04 May 2010, 00:00 AM by Payal Pathak

BMW recently launched its new 5-series model in India. On the occasion, it also announced that the company will foray into non-banking finance with investments to the core of Rs. 220 crores or $50 million.

BMW NBFC will start its operations from June 2010 as it sees good growth potential in the country. "We see 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," said BMW India President Peter Kronschnabl. BMW NBFC will enter into car leasing, financing of used car business and buy-back schemes.

BMW 5 series model is expected to do well in the Indian market. BMW has already sold 3600 units of 5 series models since it was first launched in 2007. BMW expects to sell around 11000 units this year in India. It is already the market leader in the luxury car segment in India by sales when it zoomed past its competitor Mercedes Benz last year.