The largest luxury car manufacturer of the world, BMW Group has set foot into the vehicle finance stream of Indian lending industry. The company has entered through its global finance division, BMW Financial Services with an aim to give support to customers and dealers and thereby heighten the sales figure in the country.

The finance arm is a wholly owned subsidiary of the BMW Group will be operating as a non banking finance company (NBFC) in India and has received a license in this regard from Reserve Bank of India.

BMW Financial Services would operate from Gurgaon. The company has an intitial investment plan of $50 million.

The company is fighting level headed with luxury car maker Mercedes in order to attain the top position in car sales in India.

Daimler AG, the manufacturer and seller of Mercedes cars has plans to set up Daimler Financial Services in India by 2011.

"We would provide tailor-made financial services through our dealers and also cater to other brands from Maruti to Honda, where our dealers have a commercial interest," Sanjiv Shah, the newly-appointed MD & CEO of BMW Financial Services said.