Simply put, this move will allow Ford Credit India to operate as a nonbanking financial company in India.
Reserve Bank of India (RBI) has granted a licence to Ford Credit India to exist as a nonbanking financial company. This new company will start dealer wholesale inventory financing in the first quarter of 2015 and consumer retail financing will follow later. This move will also allow Ford to serve its domestic and export markets through its newly launched unit.
Speaking through the press release, Mr. Mark Constable, Managing Director, Ford Credit India said, “We are very pleased to be launching Ford Credit India early in 2015. Ford Credit has 55 years of global experience in automotive financing. Through our full-service financing operation, Ford Credit will leverage its experience and expertise in supporting Ford’s growth plans in India.”
This development is also important for the American car manufacturer as India is a key player in its Asia Pacific strategies. Half of $ 2 billion, the money Ford plans to invest in India, has already been spent on the new manufacturing facility in Sanand, Gujarat. This plant is highly crucial to the carmaker as it will, as planned, double Ford’s production capacities in the country to 610,000 engines and 440,000 vehicles a year. This move will help Ford strengthen its base in India which is already surging ahead with 304 sales and service outlets in 164 cities.
Adding more to it Mr. Nigel Harris, President and Managing Director, Ford India said, “Ford Credit is a great partner and helps us meet customer needs globally. We are excited to have the team establishing operations here to support our growth plans. With our vehicle introduction plan over the next 18 to 20 months in India, Ford Credit’s support with financing solutions not only will promote sales, but also contribute to satisfaction and loyalty for our brand and dealers.”