German car maker Volkswagen said that it plans to make an initial investment of INR 120 crore to launch its non banking financial arm in India. The firm said its group company Volkswagen Finance Private Ltd has received licence from the Reserve Bank of India to start its Non-Banking Finance Company.

The company in a statement said that "VWFPL has been granted an NBFC licence by the Reserve Bank of India, enabling it to make its first offering to the Indian market with three product lines VW Finance, Skoda Finance, Audi Finance.”

It added that customers can avail of financing options at any of the 164 dealer outlets of group brands Audi, Skoda and Volkswagen.

Headquartered in Mumbai, VWFPL is making an initial investment of over USD 24 million in India. The new financial services will include 3-in-1 package consisting of financing, insurance and maintenance.

Commenting on the development, Mr Joern Achim Kurzrock Volkswagen Financial Services India chairman said that "India being one of the fastest growing economies, VWF India wants to present itself in the Indian market as a mobility provider with products which fully respect the needs of VW, Skoda and Audi customers."

(Sourced from ET)