Automobile major, Daimler is now going to set up a non banking finance arm (NBFC) in India. The german company has received approval from regulator, Reserve Bank of India in this regard.

The NBFC would be named, Daimler Financial Services India Private Limited. It will operate as a full time subsidiary of Daimler.

Sources say that Daimler is planning to make a total investment of 50 million dollars in the new subsidiary.

"With businesses in over 40 countries, every second passenger car and every fourth commercial vehicle from Daimler is financed or leased by us. India is one of the fastest growing automotive markets and Daimler Group has high expectations from this market." said Richard Howard, member of the board of management (Africa & Asia/Pacific) of Daimler Financial Services.