The Germany based leading luxury car maker Mercedes is planning to roll-out its Financing and leasing arm – Daimler Financial Services (DFS) - in the Indian market by July this year. The prospective finance arm of the company is expected to become fully operational by the last quarter of year 2011. DFS is a major financial service provider for Daimler in more the 40 countries worldwide.
As per a recent statement given by Mr. Peter Honegg, MD & CEO of DFS, the services that DFS offers include finance and leasing, fleet management, dealer financing, insurance and banking. In India, the firm would be mainly dealing in the field of finance and leasing, insurance and dealer financing.
While commenting on the new tax proposals by the government on CKD (completely knocked-down) units, Peter Honegg, MD & CEO, DFS said, “The new tax proposals on CKD kit will have a serious implication on the luxury car segment. Depending on the clarification we get from the government, we will look at fresh investments in the country.”
He said that a change in current CKD definition will have severe impact on company’s sales which would change the production strategy as well. Mercedes Benz has to bring in engines, gearbox and assemble in India and it takes time and needs special equipment.
