Japanese auto major Honda Motor Co Ltd on Wednesday said it has set up a subsidiary in India to offer retail sales financing services, including loans and lease sales options, to customers.
Honda Finance India Pvt Ltd will offer customers retail sales financing services, including loans and lease sales options for the company’s products in the country, the automaker said in a statement.
In India, where further growth of the motorcycle and automobile markets is expected, the number of customers using loans to purchase motorcycles and cars is also expected to increase, it noted.
Retail sales financing services in the Indian market have mainly been provided by local financial institutions. However, in light of market trends, Honda will further strengthen its business in India by offering its own sales financing services through a local subsidiary in India, it said.
Honda Finance India Pvt Ltd will apply for a non-banking financial company (NBFC) license to conduct financial services business, it added. After obtaining the license, the company will begin offering retail sales financing services to help customers finance their purchase of motorcycles, automobiles and services provided by Honda, it said.
Honda said it has set up retail sales financing services in Japan and various countries in key regions such as North America and Europe. With the establishment of the new company, India became the ninth country where Honda has a local subsidiary to offer financial services, it said.