The Volvo Group today launched its retail finance services targeted to help Volvo and Eicher customers. Volvo Financial Services in India is in partnership with Srei BNP Paribas, an NBFC that has been financing construction equipment and commercial vehicles in India.
The global finance arm of the Volvo Group was formed in 2001 and conducts business in over 40 countries. About 20 per cent of Volvo's sales globally come through financing provided by Volvo Financial Services.
“This alliance will allow both companies to address new growth opportunities by developing co-branded financing programmes and services for customers of the Volvo group,” said Mr John Rakocy, President of Volvo Financial Services, Asia/ Pacific regions. Financing would be extended to Volvo trucks, construction equipment, buses and Eicher trucks and buses.
Sales of construction equipment in the country is estimated at $5 billion and of commercial vehicles at $10 billion. About 70 per cent of these sales is financed by NBFCs and the rest by cash or through banks, said Mr D.K. Vyas, CEO, Srei BNP Paribas. The company has been financing Volvo Group products but has only now formalised the association, he said.
Srei BNP Paribas has 33 per cent market share of the financing business in the construction equipment segment. It is soon planning to enter the medical equipment and agriculture equipment market, Mr Vyas added.