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| Hwang Yoo-no, third from left, global president of Hyundai Capital, and Banco Santander Brasil CFO Angel Santodomingo, fourth from left, pose with other officials at their joint venture launch event in Sao Paulo, Brazil, March 20. Courtesy of Hyundai Capital |
By Park Hyong-ki
Hyundai Capital and Spain-based Santander Group have launched a joint venture in car financing in Brazil, the financial arm of Hyundai Motor Group said Wednesday.
The venture will be named Banco Hyundai Capital Brasil with an equity capital of $81 million.
Hyundai Capital and Santander Brasil each hold a 50 percent stake in the entity, which will be "the exclusive" consumer car financing service provider in Brazil for Hyundai Motor.
"The joint venture will be Hyundai Capital's first step into the Latin American market, and it has received authorization by the Central Bank of Brazil. Banco Hyundai Capital Brasil started operating April 15," a Hyundai Capital spokesman said.
Hyundai Capital said it sees great potential in the Brazilian automotive sector amid growing demand for cars in the region.
The demand is expected to reach 2.7 million cars in 2019, with the automobile market growing 11 percent on average annually over the past three years.
Brazil's car financing saw an annual growth of 48 percent on average in the same period.
Hyundai Motor has a nine percent market share in the country, according to Hyundai Capital.
Santander Bank in Brazil has been offering retail credit services for 49 years and has been a local partner of Hyundai Motor since 2012.
Banco Hyundai Capital aims to combine Santander's strength in local network operations and Hyundai Capital's expertise in automobile finance.
"Hyundai Capital is supporting Hyundai Motor's sales with a localization strategy based on the expertise that the company has accumulated in the market over many years," Hwang Yoo-no, global president of Hyundai Capital, said in a press release.
"The newly launched joint venture will back the growth of Hyundai Motor with differentiated products and services, and will contribute to expanding the automotive group in Central and South America."
Santander said the company will actively seek to attract new customers with Hyundai Capital.
"We will be able to support Hyundai, its dealers and customers with dedicated products and services, operating as a bank," said Angel Santodomingo, chief financial officer of Santander Brasil.
Currently, Hyundai Capital offers automotive financial services to Hyundai Motor and Kia Motors customers in countries such as the United States, the United Kingdom and Germany.
It is also considering making inroads into Southeast Asian markets with its parent group for new growth.
Hyundai Motor has said it could have Hyundai Capital establish its base in Vietnam.
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