Daimler gets RBI nod for financial services business in India
25 Apr 2011
German car corporation, Daimler AG today said it has received Reserve Bank of India (RBI) approval to set up a non-banking finance company for its financial services business in India.
Daimler Financial Services India Private Limited will be a 100-per cent subsidiary of Daimler AG and is expected to be operational in the third quarter of 2011.
''India is one of the fastest growing automotive markets and Daimler Group has high expectations from this market,'' said Richard Howard, member of the board of management of Daimler Financial Services AG responsible for the region Africa and Asia/Pacific.
The Indian subsidiary will support the sales of Mercedes-Benz cars and Daimler trucks, Howard said. ''We see a large demand for financing solutions in the market and will initially invest upwards of 50 million US dollars as part of market entry.''
The financial arm will provide financing, leasing, insurance and dealer financing for Mercedes-Benz passenger cars.
Commercial vehicle finance products will be launched once Daimler's truck brand BharatBenz begins production in 2012.
Daimler Financial Services AG is the financial services arm of Daimler AG.
