Hyundai Capital eyes auto industry as future growth engine

Hyundai Capital headquarters on Yeouido, Seoul / Courtesy of Hyundai Capital

By Jhoo Dong-chan

Hyundai Capital, a consumer financial service providing unit of Hyundai Motor Group, has selected the automotive industry as its future growth engine and is enhancing its related activities.

According to financial circles, Hyundai Capital held an in-house forum recently to discuss its earnings overseas and future business plan. At the event, the financial service firm also invited automotive technology analysts to analyze the latest trends.

“We studied various automotive technologies together such as autonomous driving, eco-friendly vehicles and car-sharing networks as well as the latest vehicle trends,” a Hyundai Capital official said.

“Trends are changing more rapidly overseas in terms of automotive technology. The industry is now accommodating autonomous vehicle technologies. This will fundamentally change insurance and finance programs regarding vehicles.”

At the event, Hyundai Capital said it would roll out various financial products accommodating self-driving vehicles and car-sharing network technologies.

“The car industry used to focus on customers who buy cars. Now, the concept has changed into one of sharing commodities. A certain level of self-driving technologies is already here, but we haven't come up with related insurance products yet,” Daelim University professor Kim Pil-soo said.

Hyundai Motor said it has partnered with a local tech firm in the U.S. to roll out a car-sharing service there by utilizing the carmaker's autonomous driving cars.

In line with the carmaker's move, Hyundai Capital said it will establish a joint venture with an American self-driving tech firm.

Partnerships between financial and tech firms have been more frequent due to rapid technological advancements.

Hyundai Capital said its local unit in the U.S. has won the Association for Financial Professionals 2019 Pinnacle Grand Prize for its excellence in treasury and finance.

The Pinnacle Grand Prize, sponsored by Mitsubishi Financial Group, was presented Oct. 21 before the opening keynote at AFP 2019 in Boston.