India is set to become be the third largest car market by 2016, ahead of Ja...
It’s a trend which most vehicle manufacturing companies have been following for quite some time in India. Along with selling the vehicle offer financial and insurance solutions at the dealer end itself so that the customer can have a single and seamless window for buying a vehicle. [more] This is done for two wheelers, cars and heavy vehicles. Maruti, Bajaj group and other already have arms which provide loans for buying cars and bikes and also provide car insurance when a car is purchased.
The latest to join this profitable venture is the German car maker BMW. They have launched their own financial services business, named BMW India Financial Services, with an investment of Rs. 230 crores which will help their customers get easy access to credit and insurance solutions. So far none of the foreign premium car manufacturers offer this solution, though most domestic players do.
Though the arm is primarily to facilitate the purchase of BMW brand of cars, the company will surely not want to miss out on the business of financing other cars too. For providing auto insurance solutions the company has tied up with Bajaj Allianz General Insurance Company.
The company would offer rates of 8.75% for loans on new and used cars while in select models there is a possibility to drop it further, says the company officials.