VW opens car finance arm in India

Despite the current slowdown in the Indian auto market, Europe’s biggest carmaker Volkswagen has expanded its presence in India by setting up a financial services subsidiary in the country. The auto major is targeting to pocket as much as 10 per cent of the Indian market in the next six year period.

The financing arm Volkswagen Finance Pvt. Ltd, which has come up at Mumbai, has been set up as a wholly-owned arm of Volkswagen Financial Services AG. According to Volvo, with the setting up of Volkswagen Finance Pvt. Ltd, the parent Volkswagen Financial Service Providers would be getting a shot in the arm and will be in a position to offer both dealers and end customers their financial services products.

Volkswagen Finance Pvt. Ltd will roll out offers specifically aimed at selling more brands under the Volkswagen Group. It is being said that the focus will be on financing buyers of luxury models such as Audi and Skoda. Volkswagen Finance Pvt. Ltd is also expected to be providing financial support for buyers of the Audi and Skoda brands as part of its plans towards development and expansion of the Indian dealer network. These apart, Volkswagen Finance Pvt. Ltd will also enter into cooperation deals with financial institutions and insurance companies in India. This move is aimed at adding to market presence for the company. Volvo currently sells sedan models Passat and Jetta as well as its sports utility vehicle Touareg.

Meanwhile the company has recently come out with its plan to launch its small car Beetle in India before the end of the current calendar. The company plans to pump in an investment to the tune of Rs. 3,500 crore in its plant at Chakan. The Chakan facility will produce as many as 1,10,000 cars a year, The Chakan plant will also make its compact car and a small sedan for India, sources said.