Volkswagen, Ford to exit auto finance business in India – sources
The auto financing arms of Volkswagen AG (VOWG_p.DE) and Ford Motor Co (F.N) plan to stop giving new credit to car buyers and dealers in India and will exit from the country, sources aware of the development told Reuters.
Volkswagen Finance Private Ltd, the German carmaker’s finance arm, stopped giving loans to car buyers in India last year and in May told dealers of all VW brands, which includes Volkswagen, Skoda and Audi, to find other financing, two sources with direct knowledge of the talks said.
As some customers failed to make repayments, the finance unit has suffered losses, and will close for business by Dec. 31, the sources said.
More than 50% of Volkswagen group dealers use credit from the finance arm, they said.
Volkswagen Finance Private Ltd said in a statement that it had acquired a major stake in Indian loan brokerage portal KUWY Technologies to service its retail customers.
It is in talks with dealers and will review its…June 11, 2021