NEW DELHI: Volvo Financial Services, the captive financing arm of Volvo Group, has started its new innings in India by launching its standalone operations in India.
Volvo Financial Services has been present in India in association with SREI PNB Paribas since 2011 but has now re launched the services alone.
Volvo Financial services will offer financial solutions to customers to buy its products that include Volvo construction equipment, Volvo trucks and buses, and Volvo Eicher Commercial Vehicle.
Volvo Financial Services is a global enterprise, and being part of the group, we have a strong understanding of the use of the products made by Volvo Group and Volvo Eicher Commercial Vehicles,” said Scott Rafkin, EVP and Global President Volvo Financial Services.
“India has always been an important market for us and the Volvo Group, and this development underlines Volvo Financial Services’ commitment to customers and dealers.
The company will start with a capital infusion of $50 million into the business in India, which is the minimum requirement according to RBI guidelines for a wholly-owned foreign NBFC.
Volvo Asset Finance India, which is the legal entity under which Volvo Financial Service operates in India was set up in January 2015. The company received NBFC licence in August this year.
The company announced that it will begin its services from six destinations namely Delhi/NCR. Hyderabad, Chennai, Bangalore, Mumbai and Ahmedabad.
The financial company will be providing services like lease, loans and insurance. Santosh Aiyar, managing director of Indian services said that for insurance, they have already tied up with New India Insurance and will look for other associations as well.
“For us, the loans will still be the bigger chunk of business as the the lease model has still not caught up in India,” Aiyar added.
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