German auto giant Mercedes Benz will enter into leasing operations by the end of the year. The company, which entered into the used car market ( of its own brand) in 2010, will foray into leasing of its branded cars ?for three to five years ? to woo customers, said Peter Honegg, managing director and CEO, Mercedes Benz India.
Honegg added: ?We are working on the modalities of the leasing option. The market for leasing of cars through structured financing in India offers a huge opportunity for companies like Mercedes Benz. the process, however, is still in its nascent stage.?
?We have to finalise the structure of financing of leased cars based on the car value after a certain period – says three or five years of leasing time – and also finalise the rate. We also have to analyse the rate at which we have to finance if the customer chooses to retain the car with himself or herself after the lease period. We need to analyse every other aspect before launching the lease option. We hope we will be in a position to launch the same before the end of the year,? he said. The Daimler financial services arm will also cover the leasing financing he added.
?Ever since we introduced used car financing in 2010, we have been getting a good response and we have sold a few hundred cars since then. Similarly, we hope to replicate the success in leasing financing too,? he added.
When asked about the company?s targets , he said: ?The luxury car market in India will grow faster than other segments as preference for owing such cars is gaining momentum in. We sold 5,800 units in 2010 and we hope to sell over 7,000 units in 2011. We are targeting 20,000 units by 2013/14.?
