"Actively Supporting Hyundai Motor Group's Complete Vehicle Sales"
Hyundai Capital announced on the 23rd that it plans to establish its Australian subsidiary in November and its Indonesian subsidiary in April next year. Following the acquisition of a financial business license from the Australian financial authorities in March, Hyundai Capital completed the acquisition of a local credit finance company in Indonesia last month.
Hyundai Capital decided to establish the Australian financial corporation as an exclusive finance company wholly owned (100% stake) by Hyundai Motor Group, without any partnership. This decision was based on the judgment that, since entering the Australian market in 2016 as an advisory firm, it has gained sufficient understanding of the Australian economy and automobile market. Over the past eight years, Hyundai Capital Australia advisory firm has been performing consulting work between finished car manufacturers and affiliated finance companies.
After establishing the Australian financial corporation, Hyundai Capital plans to support the actual sales of Hyundai Motor Group by offering various financial products. In addition to basic products, they are preparing a ‘residual value guaranteed’ product that defers part of the vehicle price until maturity to lower monthly installments and guarantees the used car price. They also plan to introduce customized interest rate services segmented by credit score and product conditions.
A digital system will be applied to the screening process. By simplifying procedures such as document submission, the screening time will be significantly reduced. Systems such as AI chatbots and real-time chat consultation services have also been established to respond to local consumers’ inquiries in real time.
The situation in Indonesia is somewhat different. Hyundai Capital selected the local fourth-largest conglomerate, the ‘Sinarmas (SINARMAS)’ group, as a partner and acquired the credit finance company ‘Paramitra Multifinance’ last month. This is because Indonesia has a ‘foreign investment equity restriction’ regulation (local companies must hold at least 15%), making it institutionally impossible to establish a wholly owned subsidiary. Additionally, both the local financial authorities and the public have high trust and affection for domestic financial companies, and the number of Indonesians using automobiles remains relatively small.
Hyundai Capital Indonesia plans to focus on securing price competitiveness and fast screening. They are applying Sinarmas insurance rates, which are among the lowest in the industry, and are promoting low-interest rate promotions. The Indonesian subsidiary has secured funding competitiveness through a funding partnership with Shinhan Bank Indonesia. They also developed a dedicated application to enable car dealers to conveniently handle quotation calculations and screening tasks on tablets and smartphones.
A Hyundai Capital official stated, “Our goal is to provide optimal financial services to local customers purchasing vehicles such as Hyundai, Kia, and Genesis through close collaboration with Hyundai Motor Group.” He added, “We will actively support Hyundai Motor Group’s finished car sales by developing unique and reasonable products that only exclusive finance companies can offer at the Australian and Indonesian subsidiaries.”
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