Daimler AG has received a ‘non-banking finance company' licence from the Reserve Bank of India for its financial services business in India.
The newly founded Indian company, Daimler Financial Services India Private Ltd, will be a 100 per cent subsidiary of Daimler AG and is expected to be operational in the third quarter 2011, said a press release issued by the company.
The release quoted Mr Richard Howard, Member of the Board of Management of Daimler Financial Services AG, as saying, “Daimler Financial Services India will support the sales of Mercedes-Benz cars and Daimler trucks as we see a large demand for financing solutions in the market. We will initially invest upwards of $50 million as part of market entry.”
The product range of Daimler Financial Services in India will include financing, leasing, insurance and dealer financing for Mercedes-Benz passenger cars at market launch.
The commercial vehicle finance products will be offered for the newly developed Daimler truck brand for the Indian market, BharatBenz, in 2012 after the start of truck production in Oragadam, close to Chennai.