Mercedes Benz India on Friday said it will enter the financing services business in the country, looking to further enhance its position after posting a new sales record for the third month in succession in September.
"We have got internal approval to start financing services business in India," Mercedes Benz India Managing Director and CEO Wilfried Aulbur told PTI. He, however, said the time of entry into the market will depend on regulatory approvals.
Globally, Mercedes Benz financial services are offered in financial leasing, dealership finance, fleet management and insurance.
"In India, we will be focusing on financial leasing, dealership finance and insurance," Aulbur said.
The financing arm will be an independent entity and will provide services for trucks and cars, as well as pre-owned cars in India, he added.
Asked about the investment involved, he declined to comment, but according to industry estimates, companies starting financial services are required to have a minimum capital deployment of $50 million.
Aulbur, however, said the company will continue to work with existing financing partners HDFC, Kotak, ICICI and Axis Bank. Commenting on September sales, he said the company was able to sell a record 663 units during the month, beating the previous best of 573 units in August.
"This was the third consecutive month since July that we have been having record monthly sales," Aulbur said.
In the January-September period, the company's total sales stood at 4,158 units, up 80 per cent, he added.
The company is also extending the reach of its pre-owned car business, Proven Exclusivity, from four cities at present -- including Delhi and Ahmedabad -- to across all locations where its dealer network is present, he added.
"In the four months since we launched the pre-owned car business, we have sold 400 units, which far exceeded our expectations," Aulbur said.
The company is now embarking on the second phase of expansion of the 'Proven Exclusivity' programme, which will be made available in Pune, Hyderabad, Bangalore, Kolkata and Jalandhar, he said.
