Honda Motor Co. Ltd. of Japan announced a new Indian subsidiary, Honda Finance India Private Ltd. This new firm will provide retail sales financing. This includes loans and leases for Honda products. Honda expects higher demand for vehicle financing in India. This is due to growth in the auto market. Local institutions mostly handled financing before.
Honda will now offer its own services through this local company. This strengthens their Indian business. Honda Finance India will seek an NBFC license. This license is needed for financial services. Once licensed, it will help customers buy Honda vehicles and services. Honda sees financial services as a core business. They already have similar subsidiaries globally.
India is now the ninth country with a Honda finance arm. The company also plans new services for software-defined vehicles. These services will use vehicle data. They aim to boost customer satisfaction. This will grow Honda’s financial services worldwide.