BMW to enter auto financing, insurance

The German luxury carmarker on Tuesday said it will invest $50 million (about Rs 230 crore) to set up a financial services subsidiary to better serve its customers besides industry as a whole.

By mid-2010 the BMW Group will introduce BMW Financial Services India as a 100 percent subsidiary, which will be headquartered in Gurgaon," BMW India president Peter Kronschnabl said at the 10th Auto Expo.

The non-banking financial company would do wholesale and retail of car financing as well as provide insurance solution to BMW car owners, he said.

The company also said it is planning to invest around $50 million in the NBFC arm in the next two years, Kronschnabl said, adding the company made an application to the Reserve Bank last month.

We hope to get the regulatory approval in the next couple of months, Kronschnabl said. As far as insurance partner is concerned, he said Bajaj Allianz General Insurance would continue to remain the insurance partner.

BMW Financial Services is currently active in more than 50 countries offering competitive financial solutions for BMW and Mini customers. In 20 countries, it offers services through leading local banking and insurance partners.

Besides, Bajaj Allianz General Insurance, BMW India has partnered with ICICI Bank to offer customised financial solutions and Orix Auto Infrastructure Services for leasing services for its customers.