With a robust demand for luxury vehicles, Mercedes-Benz Financial Services (MBFS) is eyeing a ₹10,000 crore portfolio by 2025.
Owned by Mercedes-Benz, the company finances 40 per cent of all Mercedes-Benz cars sold in India. MBFS saw a 20 per cent growth year-on-year in its portfolio.
“The vehicle product lineup by Mercedes-Benz is aspirational, we have a diamond strategy for our vehicles and have found ourselves financing by that structure. As we only finance Mercedes-Benz cars, we are an enabler in all peripheral aspects of finance and insurance of luxury vehicles. We are approaching ₹10,000-crore portfolio early next year. The company has seen a double-digit growth. The average loan prices have also grown to double-digit,” said Brendon Sissing, CEO and Managing Director of Mercedes-Benz Financial Services India to businessline.
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The company has also seen an uptick in financial services demand from tier-2 and tier-3 cities contributing up to 11 per cent. The MBFS offers customers a Star Agility financing programme, including an all-in-one EMI comprising of extended warranty, maintenance, service packages, insurance and assured buy-back value. The Star Agility Plus allows customers to buy the vehicle at residual value, continue to finance it or return the vehicle at the end of the contract period.
“The strategy of Mercedes-Benz India is to move into tier-2 and tier -3 cities as a strategic driver. And by that, the presence would also lend to the sales activities wherein we would be active. We are witnessing customers below the age of 40 interested in financing and are approaching us for their vehicle needs. This is the entry point of agility and affordability that suits their monthly budget. Below 40 years old have climbed to nearly 30 per cent of our portfolio year-on-year which used to be earlier 20 per cent. We are also seeing an increase in women customers. There are growth opportunities in the used luxury car space,” added Brendon Sissing.