German car maker Volkswagen, has announced it plans to finance pre-owned cars from January 2012, after receiving a licence from the Reserve Bank of India (RBI) to start its non-banking finance company (NBFC).
“We feel demand for pre-owned cars is good in the Indian market and we want to bank on the opportunity,” said Volkswagen Finance India Board’s Chairman Joern Achim Kurzrock.
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The company received the RBI licence March-end to start its NBFC. Volkswagen Finance plans to invest over INR1.2bn (US$27m) in India and aims to cover the entire country in the next three-four weeks.
Volkswagen Finance India is a subsidiary of Volkswagen Financial Services AG, a wholly-owned subsidiary of Volkswagen AG and is headquartered in Braunschweig, Germany. Volkswagen Financial Services (VWF) provides captive financial services for its brand cars and supports vehicle sales in 38 countries.
“India being one of the fastest-growing economies, Volkswagen Finance wants to position itself in the market as a mobility provider with products which fully respect the needs of VW, Skoda and Audi customers. Our focus is to support the sales of our branded vehicles to customers,” Kurzrock added.
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