MUMBAI: BMW India, the maker of trendy deluxe cars will kick off a new business entity this summer in the form of a retail finance division in Gurgaon and apart from helping customers make that dream purchase, it's also going to contribute to Bimmer dealerships sprouting up across the country.

BMW sold about 3,600 cars this past year and with new launches, sales could zoom close to the 4,500 unit mark by next year.

It's not just new cars that BMW's bringing to India. In order to tease the luxury segment, the German player's also incorporating its global financial model with a new entity to support its growth plans. BMW Financial Services India will operate separately from Gurgaon, employ between 150 and 200 people and spring into action by July 2010. Management says there's a strong possibility that more than the required capital will be brought into the country.

Peter Kronschnabl, President, BMW India, said "We will invest at least $50-60 million in this process and it will be leveraged to provide financing to our customers, for fleet financing and for dealer inventory..."

Normally financing solutions are geared towards the pruchase of lesser expensive cars so some consultants say that the move does come as as part of an  unexpected strategy

Steven Veldhoen, MD Asia, Booz & Co., said: "I'm pretty surprised that BMW is getting into these sorts of financial services since typically with high end luxury cars, especially in India either you buy it out right or you don't."

The BMW management emphasises that funds will partially be used to expand and assist in the roll-out of new dealerships. One area where German rival Mercedes Benz is still perhaps the strongest. Also with the assembly of the BMW-X1in Chennai,  by year end, sales numbers could cross 4,500 units in 2011. All reasons for more outlets.