Hyundai Capital India converts from advisory to full financial entity, beginning commercial operations
Hyundai Capital announced Monday that it has converted its existing advisory entity in India into a full financial subsidiary, launching commercial operations in one of the world's three largest automotive markets.
Hyundai Capital India is the company's 14th financial subsidiary abroad and its first overseas entity structured as a wholly owned, standalone operation rather than a joint venture.
The groundwork for the move was laid in March, when Hyundai Capital obtained a Non-Banking Financial Company license from the Reserve Bank of India, clearing the way to offer financial services to local customers. The company plans to pursue a localization strategy tailored to India's market conditions and customer characteristics, drawing on automotive finance expertise accumulated across global markets.
India has established itself as the world's third-largest automotive market, underpinned by a population of more than 1.4 billion — the largest in the world — and rapid economic growth. Hyundai Motor Group has been accelerating its push into the market, steadily expanding local production capacity while strengthening its electric vehicle lineup aimed at Indian consumers.
Hyundai Capital plans to expand its India business in stages, in line with Hyundai Motor Group's strategy there. In the initial phase, Hyundai Capital India will focus on dealer finance — providing financial services directly to local automotive dealerships — reflecting the country's vast geography and significant variation in financial conditions across regions.
Alongside building out a dealer-focused financial network across India, the company will also accelerate efforts to establish a stable retail finance operation and risk management system for individual customers.
"Drawing on the automotive finance expertise we have built in South Korea and major global markets, we plan to introduce a range of financial services in India that support Hyundai Motor Group's sales," Hyundai Capital President Jeong Hyeong-jin said. "We will do our utmost to achieve both growth and stability through a management strategy optimized for the Indian market."
Meanwhile, Hyundai Capital operates 19 entities across 14 countries, including the United States, Canada, the United Kingdom, Germany and Australia, and continues to expand its financial business in key markets worldwide in line with Hyundai Motor Group's global growth.
Hyundai Capital posted a net profit of 319.6 billion won ($232 million) in the first half of this year, with a delinquency rate of 0.78 percent.
won@heraldcorp.com
