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Hyundai to bring captive financing arm in India

Hyundai Capital may enter domestic market next year

Ajay Modi  |  New Delhi 

hyundai, Hyundai Motors
Hyundai Capital will offer financial services to dealers on vehicle inventory and to individual car buyers at the retail level. (File photo: Reuters)

Korean automobile major Hyundai, the second-biggest carmaker in the country, is planning to bring its captive finance arm, 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. commands a 17 per cent share in the domestic passenger vehicle market with the 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, 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. 

Capital is present in markets like and  

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 Motor India, in response to queries about the entry of Capital. 

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 Motor India, said in an interaction in July that it is his dream to sell a million units annually in the domestic market.

First Published: Fri, October 06 2017. 00:28 IST