Volvo Financial Services, the finance arm of the Volvo Group, has formed an alliance with Srei BNP Paribas to launch a private label retail financing programme. With this alliance, Volvo will offer financial solutions to customers to buy its products that include construction equipment, trucks and buses.
The customers of Volvo’s joint venture with Eicher Group, VE Commercial Vehicles Ltd (VECV) will also be able to get finance from the new entity, John Rakocy, president of Volvo Financial Services for Asia-Pacific, said.
“We will leverage the expertise of Srei and their financial capabilities in credit underwriting, funding, sales and marketing effectiveness through a private label programme under the Volvo Financial Services name,” he said.
Going forward, the alliance partners will also prepare a roadmap for forming a joint venture in the vehicle finance business, he said.
The alliance will allow both companies to address new growth opportunities by developing co-branded financing programmes and services for customers of the Volvo Group and Srei BNP Paribas. Volvo Group’s brands include: Volvo trucks, Volvo Construction Equipment and Volvo Buses and VECV’s brands include Eicher trucks and Eicher buses.
“We have been financing Volvo Group products since their entry into the country. But through this formal alliance, we will complement each other’s strength and further cement our relationship. This also enables us to enter into the financing of commercial vehicles in a more organized way,” D K Vyas, ceo, Srei BNP Paribas said.
Srei BNP Paribas, which had a loan portfolio of Rs 10,000 crore in 2010-11, is looking at a 50 per cent growth this fiscal. With its alliance with Volvo, the company aims to extend finance to the truck and bus customers of Eicher and Volvo. The company has a 33 per cent market share in the infrastructure and construction equipment finance in the country.
Volvo Financial Services provides a full range of financial services for the truck, construction equipment, bus, marine and aerospace industries. Globally, Volvo Financial Services supports brands like Mack Trucks, Renault Trucks, UD Trucks, Volvo Trucks, Volvo Construction Equipment, Volvo Buses, Volvo Penta and Volvo Aero.