BMW India to invest $50 mn in NBFC, to start ops this June
German auto major BMW on Friday said it plans to start its car finance business in Mumbai by June.business Updated: Apr 30, 2010 20:41 IST
German auto major BMW on Friday said it plans to start its car finance business in Mumbai by June.
The automaker plans to invest $50 million (about Rs 220 crore) over the next 24-months for expansion of its non-banking finance corporation--BMW-NBFC.
"We see a tremendous potential in the Indian market, especially on the car finance segment. BMW plans to invest over $50 million in the next two-years to set up offices and start operations of BMW-NBFC," BMW India President Peter Kronschnabl told reporters on the sidelines of the launch of its sixth generation of 5 series model.
The company plans to start the NBFC business by June this year, Kronschnabl said.
With the launch of BMW-NBFC, the company plans to enter into car leasing; buy-back and financing used car business.
The company expects sales of luxury cars to cross 11,000 units this year, Kronschnabl said, adding there is a huge scope for growth in the Indian market.
The company is betting high on its 5 series model and has sold over 3,600 units of the 5 series in India since 2007.
BMW 5 series accounts for 50 per cent of the company's global sales.