Hyundai Capital, the financial arm of Hyundai Motor Group, and Santander Brasil, a listed subsidiary of Santander Group, celebrated on April 17 the launch of the joint venture Banco Hyundai Capital Brasil S.A., which will operate in Brazil to support customers and dealers of the brand with financial services.
The joint venture represents Hyundai Capital’s first step into the Latin American market and has already received authorization by the Brazil Central Bank to operate from Feb. 21
Banco Hyundai Capital Brasil will be the exclusive consumer financing service provider in Brazil for Hyundai. The joint venture has been initially capitalized at US$81 million. Hyundai Capital and Santander Brasil each hold a 50 percent share.
Hyundai Capital sees great potential in the Brazilian automotive industry. The demand for new cars in Brazil is expected to reach 2.7 million units in 2019. The CAGR of the market for three previous years was 11 percent, and the automotive financial service usage rate is around 48 percent. Hyundai Motor has a 9 percent market share in the country.
Santander Brasil, the joint venture partner, has been offering consumer credit services in Brazil for 49 years and has been a local partner of Hyundai since 2012. Banco Hyundai Capital Brasil aims to offer best-fit financial services for the Brazilian market by combining Santander Brasil’s robust local network and operations and Hyundai Capital’s expertise in the automotive finance industry.
Hwang Yoono, global president of Hyundai Capital, said, “Hyundai Capital is supporting Hyundai Motor’s sales with a localization strategy based on the expertise that the company has accumulated in the market for many years.” He added, “The newly launched joint venture will back the growth of Hyundai Motor with differentiated products and services and ultimately contribute to expanding the group’s position in Central and South America.”
“As a bank, we will be able to reach the customers with more agility. We will be able to improve finance support for Hyundai, its dealers and final customers with dedicated products and services operating as a captive bank,” said Angel Santodomingo, vice president and CFO of Santander Brasil.
Since the start of operations in Brazil, Hyundai Motor Brasil has been offering financial support by Hyundai Financiamentos, which was the previous partnership with Santander. Now, the relationships with customers remain the same and contracts will be gradually updated to Banco Hyundai Capital Brasil.
Hwang Yoono, global president of Hyundai Capital; Angel Santodomingo, vice president and CFO of Santander Brasil; and Eduardo Jin, president and CEO of Hyundai Motor Brasil attended the ceremony held at Banco Hyundai Capital Brasil headquarters in Sao Paulo on March 20, 2019.
Currently Hyundai Capital offers its automotive financial services to Hyundai and Kia customers in Korea, the U.S., the U.K, Germany and six other countries.