The German car manufacturer Volkswagen has set up its financial service arm (Volkswagen Finance Pvt. Ltd) in India. The establishment of this finance arm is credited to cater to the requirements of the dealers as well as the customers for selling or buying all Volkswagen brand cars in the country.
Volkswagen Finance Pvt. Ltd. will offer financial services for Volkswagen, Volkswagen Commercial Vehicles, Audi, and Skoda. The company also plans to tie up with local car finance companies and insurance companies in order to increase market penetration.
In India, sales of vehicles have drastically fallen because of tight credit crunch in the market. In addition, the high interest rates have further pulled down car sales. With the establishment of its finance arm in the country, Volkswagen ensures adequate financing for all those who desire to buy cars.
The company also has plans to start import of commercial vehicles in India. It is also investing a huge amount in the country to set a production facility with a capacity of 110,000 units. This proposed facility is expected to start operations this year.