Daimler AG forays into financial services space

Chennai, July 19: Germany-headquartered Daimler AG today (Jul 19) forayed into the financial services space in India with the establishment of a new Daimler Financial Services subsidiary in the country.

"Two out of five Mercedes Benz cars and every fourth commercial vehicle of Daimler group worldwide is financed by Daimler Financial Services. We intend to replicate this success story in India," Daimler Financial Services AG Board of Management Chairman Klaus Entenmann said.

Currently, Daimler Financial Services operates in 40 countries, achieving a contract volume of 63.7 billion euros in 2010.

As part of its foray into the Indian market, Daimler Financial Services announced an initial investment of USD 50 million. He said Daimler Financial Services aims to reach a contract volume of USD 500 million in India in five years.

Daimler Financial Services India would initially offer finance, leasing and insurance products to customers and dealers of Mercedes Benz cars in India under the Mercedes Benz Financial programme with immediate effect.

Commercial vehicles from Daimler India would also be covered under this initiative. By 2012, Daimler's truck, ''BharatBenz'', is expected to be operational. Daimler Financial Services India would also support sales of financial services for BharatBenz.

Daimler Financial Services provides customers with a full range of automotive financial services, including financing, leasing, insurance and fleet management worldwide.

PTI