Korean automobile major Hyundai, the second-biggest carmaker in the country, is planning to bring its captive finance arm, Hyundai
Capital, to India. It is learnt that the entry might happen in 2018 calendar year, before Hyundai’s another brand, Kia, begins sales in the market.
Capital would offer financing to dealers on vehicle inventory and to individual buyers at the retail level. A feasibility study has been initiated to evaluate its business prospects in India, Hyundai’s third-biggest market globally. Hyundai
commands a 17 per cent share in the domestic passenger vehicle market with the Hyundai
brand. It is now setting up a $1.1 billion manufacturing unit in Andhra Pradesh for the Kia brand, sales for which would begin from 2019.
Global carmakers such as Ford, Volkswagen, Mercedes Benz, BMW
and Volvo, among others, operate their finance arm in Indian market. Captive finance helps carmakers to offer financial products tailored to meet the needs of dealerships for dealer inventory and facility financing. These dealers further provide indirect vehicle financing and leasing solutions to retail customers.
is a global automaker with strong product presence across the segments in various markets. We continuously conduct feasibility studies to check the new market trends to avail new opportunities and understand customer needs to capture growing opportunities in the world markets,” said a spokesperson at Hyundai
Motor India, in response to queries about the entry of Hyundai
has sold 4.95 million vehicles in domestic market and shipped 2.58 million units to about 87 export markets since its entry in 1996. It clocked a revenue of $5 billion in FY17 and earned profit of $289 million. The company is looking at ways to further cement its share in India as growth in markets like China is slowing down. Y K Koo, managing director and chief executive officer at Hyundai
Motor India, said in an interaction in July that it is his dream to sell a million units annually in the domestic market.