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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.
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.
