VW opens vehicle finance arm in India

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 Pvt Ltd will be a wholly-owned subsidiary of Volkswagen Financial Services AG, the company said in a statement. The offer will apply specifically to the group brands Volkswagen, Volkswagen Commercial Vehicles, Audi and koda, it said, adding the finance arm will also support these group brands further through the important development and expansion of the Indian dealer network. 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. (January 29, 2009)