Daimler Financial Services embarks on ambitious growth path in India

Tuesday 19 July 2011, 20:29 PM by Vikas Yogi

  • Official launch of Daimler Financial Services India Pvt Ltd.
  • Financing and insurance offers to customers and dealers
  • Contract volume of USD 500 million expected in five years
  • Initial investment of USD 50 million
  • Headquartered in Chennai, operating under the brand Mercedes-Benz Financial
  • Financial Services for BharatBenz planned in 2012

Chennai/Berlin -- 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.

Daimler Financial Services embarks on ambitious growth path in India | CarTrade.com
Daimler Financial Service.

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.

Daimler Financial Service

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.”

Further information from Daimler is available at: www.media.daimler.com and www.daimler.com

About Daimler

The company’s founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. 125 years later, in anniversary year 2011, Daimler AG is one of the world’s most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive financial services including financing, leasing, insurance and fleet management. As an automotive pioneer, Daimler continues to shape the future of mobility. The Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in all three technologies of hybrid drive, electric motors and fuel cells, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment. Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. In addition to Mercedes-Benz, the world’s most valuable automotive brand, Daimler’s brand portfolio includes smart, Maybach, Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In the year 2010, the Daimler Group sold 1.9 million vehicles and employed a workforce of more than 260,000 people; revenue totaled €97.8 billion and EBIT amounted to €7.3 billion.

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