Volvo Group recently launched their retail financial services which are aimed to help their Eicher and Volvo customers. Volvo’s Financial Services division in India recently partnered with Srei BNP Paribas, which is a non-banking financial corporation that finances commercial vehicles and equipments in India.
The global finance division of Volvo Group began in the year 2001, and operates in more than 40 countries. Volvo meets 20% of its global sales from financing provided by its Financial Services division. The president of this division’s Pacific/ Asia regions, John Rakocy, said that this partnership will help both of their companies address new opportunities for growth by creating co-branded financing services and programmes for their customers.
D.K.Vyas, the CEO of Srei Paribas, said that these financial services would also be extended to their trucks, buses, construction equipment, and Eicher buses and trucks. The country had estimated sales of construction equipment amounting to $5bn, while commercial vehicle sales amounted to $10bn. Of these 70% sales were financed by non-banking finance corporations, and the rest through banks or cash.
The company already used to finance products from the Volvo Group, however only formalised the association now. Srei BNP Paribas has a market share of 33% in the construction equipment markets finance business. Vyas also added that they are planning on entering the agriculture equipment and medical equipment market soon.