Volvo Financial Services (VFS), the captive financial service of the Swedish truck and bus major Volvo Group, is looking at possibilities to set up their operations in India, a top official of the company said.
Without disclosing any firm details over the move, Eric Leblanc, managing director of Volvo India, said, ?They (VFS) have not yet decided to come India. There are no definitive plans at this point. We are exploring options to have financial services in India.?
If the company set up its captive financial services, he said, ?It would help the company to expand relationship with customers, offering one-stop shopping. We would able to bundle payments of principle, interest and insurance.?
Recently Volvo and Eicher have signed a definitive agreement to set a joint venture for trucks in India under the umbrella of VE Commercial Vehicles (VECV).
With the help of joint venture, Leblanc said the company aims to touch a sales of 1,00,000 units per annum by 2015 to acquire 15% market share in the Indian commercial vehicle market.
?We are trying to encourage VFS to come to India. We would like to have 100% owned finance company that requires minimum capital investment of $50 million. There should be initial volume requirement to justify that investment.?
