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vwfs.co.in

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Investments

1

About Volkswagen Finance

Volkswagen Finance is owned by Germany's Volkswagen Financial Services AG, which is a wholly-owned unit of auto major Volkswagen AG.

Volkswagen Finance Headquarter Location

A- Wing, Silver Utopia A- Wing, Silver Utopia

Mumbai, 400099,

India

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Latest Volkswagen Finance News

Volkswagen, Ford To Exit Auto Finance Business In India

Jun 14, 2021

The auto financing arms of Volkswagen AG and Ford Motor Co 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 another 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 business strategy by the end of the year, the company said. The auto finance arms are classified as non-banking financial companies (NBFCs) and they compete with banks for providing credit. But banks have access to cheaper funding so can offer loans at lower rates than those offered by NBFCs or shadow lenders. To offset the disadvantage, Volkswagen and Ford would offer incentives to those dealers who have used their credit finance, the sources said. Dealers typically need credit to buy cars from automakers which they then sell on to customers. Volkswagen’s plan to exit the financing business has surprised dealers, coming weeks ahead of the launch of Skoda’s new sport-utility vehicle (SUV) to boost sales in India, the two sources said. Skoda dealers have been asked to find new financing by the end of the month – a tight deadline ahead of a new model launch, one source said. Ford Credit, the automaker’s financing arm, stopped lending to car buyers at the end of last year and will cease credit to dealers by June 30, two separate sources said. The decision to exit the financing business comes at a time when Ford is finalizing a new strategy for India after ending ties with Mahindra & Mahindra on Dec. 31. A Ford Motor India spokesperson said the company regularly assesses market conditions for its credit business and the decision to discontinue was conveyed to dealers in October – before it made any announcement on the Mahindra partnership. “We are confident the auto financing sector in India can support Ford customer and dealer new financing needs. Our team continues to service our existing book of business,” the spokesperson said, adding that 25%-30% of its dealers do business with Ford Credit. Post Views: 13

Volkswagen Finance Investments

1 Investments

Volkswagen Finance has made 1 investments. Their latest investment was in Kuwy Technology as part of their Corporate Minority on September 9, 2019.

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Volkswagen Finance Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

9/18/2019

Corporate Minority

Kuwy Technology

Yes

2

Date

9/18/2019

Round

Corporate Minority

Company

Kuwy Technology

Amount

New?

Yes

Co-Investors

Sources

2

Volkswagen Finance Acquisitions

1 Acquisition

Volkswagen Finance acquired 1 company. Their latest acquisition was Kuwy Technology on January 11, 2021.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

1/11/2021

Corporate Minority

Corporate Majority

2

Date

1/11/2021

Investment Stage

Corporate Minority

Companies

Valuation

Total Funding

Note

Corporate Majority

Sources

2

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