Volkswagen Finance gets NBFC license from RBI

Mar 28, 2011 |

mumbai

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Volkswagen Finance Private Limited, a subsidiary of Germany-based Volkswagen Financial Services AG, on Monday said it has received a licence from the RBI to set up a Non-Banking Finance Company (NBFC) in India.

"We received the licence from the Reserve Bank of India for setting up our NBFC last week. We have already begun operations and will soon cover pan-India," Volkswagen Finance India's Board Chairman, Joern Achim Kurzrock, told reporters here.

Volkswagen Finance will offer three financial products – Volkswagen Finance, Audi Finance and Skoda Finance – which will be available in VW Group's 164 outlets pan-India.

The company will make an initial investment of over Rs 120-crore and will be headquartered in Mumbai. It has already hired 120 professionals and plans to increase its head count to 300 by end-2011.

"India being one of the fastest-growing economies, Volkswagen Finance wants to present itself in the Indian market as a mobility provider with products which fully respect the needs of Volkswagen, Skoda and Audi customers. Our focus is to support sales of our branded vehicles to customers," Kurzrock said.

"Besides classical financing we are also introducing a bundled loan with insurance and maintenance packages and become a one-stop shop to support the sales of our brand vehicles in India," he said.

The RBI license enables the company to offer customers of VW, Skoda and Audi cars the opportunity of a wide-range of financial services including bundled 3-in-1 packages consisting of financing, insurance and maintenance.

This enables the customers in effect to walk into a dealer showroom and drive out with the vehicle of their choice.

"Now Volkswagen Financial Services will be able to further strengthen its services and support the mobility needs of customers by offering loans and gain efficient market penetration," he said.

"We aim to be a key player in this segment in future as we are growing fast in India. We will continue to invest in the country to tap the market and increase our sales," he said.
Globally, Volkswagen Financial Services (VWF) provides captive financial services for its brand cars and supports vehicle sales in 38 countries.

Volkswagen Financial Services AG is a wholly owned subsidiary of Volkswagen AG and is headquartered in Braunschweig, Germany.

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