Volvo & Srei BNP Paribas to form India JV

Global vehicle manufacturer Volvo and infrastructure equipment non-banking financial company Srei BNP Paribas on Wednesday said they will join hands to launch a private label retail financing programme in India, which is expected to lead to a joint venture in three years.

The programme, branded as ‘Volvo Financial Services’, would strengthen the Volvo Group’s ability to provide full service financial solutions to Volvo Group customers in India and customers of its joint venture with Eicher Group, VE Commercial Vehicles, Volvo officials said at a news conference.

With the launch of the Volvo Financial Services offering, the Volvo Group said it would accelerate its business growth in India across all products by packaging its product offerings with financing through this alliance.

By engaging the two companies at the sales, marketing and operational levels, the alliance would allow both companies to address new growth opportunities by developing co-branded financing programmes and services for customers of the Volvo Group and Srei BNP Paribas, Volvo officials said.

“The Volvo Group and its distributors will benefit from leveraging Srei’s expertise and financial capabilities in credit underwriting, funding and sales and marketing effectiveness through a private label programme under the Volvo Financial Services name,” Volvo Financial Services Asia/Pacific President Mr John Rakocy said.

Srei BNP Paribas CEO Mr D K Vyas said the three-year, mutually binding alliance would cover all Volvo products. “The alliance actually is laying a roadmap for a joint venture maybe three years down the line,” he said.

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