Europe's biggest carmaker Volkswagen, which is aiming to capture 10 per cent of the Indian market in the next five to six years, today said it has set up a financial services arm in the country to bolster sales.
The financing arm to be headquartered in Mumbai, Volkswagen Finance will be a wholly-owned subsidiary of Volkswagen Financial Services AG, the company said in a statement.
"With the foundation of the Indian company, Volkswagen Financial Service Providers are now in a position to offer both dealers and end customers their financial services products," it said.
The offer will apply specifically to the group brands Volkswagen, Volkswagen Commercial Vehicles, Audi and Škoda, it said, adding the finance arm will also support these group brands further through the important development and expansion of the Indian dealer network.
Volkswagen Finance will conclude cooperation agreements with Indian financial institutions and insurance firms with a view to realising efficient market penetration, it said.
Last year, Volkswagen had announced that the group is aiming to have an overall market share of 10 per cent in India in the next five to six years.
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Currently, it sells sedan 'Passat' and 'Jettta' along with SUV 'Toureg'. It plans to launch its iconic small car 'Beetle' this year.
VW had also announced an investment of Rs 3,500 crore in the Chakan plant, which will have a capacity to produce 1,10,000 cars a year, from where it plans to roll out a compact car and a small sedan.
The VW Group, which own seven car brands, currently sells Audi, Skoda and the Volkswagen brands in India.