Hyundai Capital Services Inc. is pushing to expand its global business to emerging countries such as Brazil and India. The company is turning its eye to foreign countries as Hyundai Motor Group shows sluggish sales in China.
Hyundai Capital China posted 757 million yuan (US$112.75 million or 128.31 billion won) in pre-tax profit last year, down 22 percent from a year earlier, according to financial industry sources on April 7. In addition, experts expect that the company can continue to show sluggish sales as Hyundai Motor Group decided to close down its Beijing Plant 1.
Accordingly, Hyundai Capital is expanding its global business to Europe and emerging countries, including, Brazil and India. Hyundai Capital GermanyGmbh saw its assets increase to nearly 600 million euro (US$673.74 million or 766.72 billion won) in just two years after it started operation in the country, while Hyundai Capital Canada, which was founded in 2015, succeeded in turning a profit last year.
In particular, Hyundai Capital is focusing on its subsidiary in Brazil, which is to start operation soon. The company sought to establish a joint financial firm from 2016 after joining hands with Spain’s Banco Santander S.A. Hyundai Capital gained its license to do business from Brazil’s central bank last month and it is highly likely to start business in the first half of this year at the earliest. The company is planning to expand its local business based on Hyundai Motor’s captive market. Hyundai Motor produced and sold 1 million units in Brazil last year, accomplishing a 10 percent market share. It attained the milestone in six years after pushing into the Brazilian market.
Hyundai Capital is now working on setting up a local subsidiary in India. The company is seeking to build a 100 percent stake owned subsidiary in India,instead of a joint firm like in Brazil. It is planning to accelerate the establishment of the Indian subsidiary as the Indian car market is rapidly growing as well.