Hyundai Capital has begun financial operations in India, launching its 14th overseas finance unit as it seeks to support Hyundai Motor Group's expansion in the world's third-largest automobile market.
Hyundai Capital India officially started operations after converting its existing consulting entity into a financial company, Hyundai Capital said Monday. The unit will operate as a stand-alone subsidiary under Hyundai Capital's independent management.
The company secured a nonbanking financial company license from the Reserve Bank of India in March, allowing it to directly provide financial services in the country.
Hyundai Capital, the captive finance arm of Hyundai Motor Group, has maintained a presence in India since 2012 through a consulting entity that worked with local financial partners. The conversion marks a shift from providing advisory services to directly offering financing products in the market.
The India unit will initially focus on dealer financing, providing funds to Hyundai and Kia dealers for vehicle inventory and other business needs. Hyundai Capital plans to gradually expand the network across India and build sales and risk management systems for retail financing to individual vehicle buyers.
The move comes as Hyundai Motor Group expands its operations in India, increasing local production capacity and strengthening its electric vehicle lineup. Hyundai Capital operates 19 entities across 14 countries, providing financial services in line with the automaker group's overseas expansion.
"We plan to provide a range of financial services in India to support Hyundai Motor Group's sales, drawing on the auto financing expertise we have built across global markets," Hyundai Capital CEO Chung Hyung-jin said. "We will pursue both growth and stability through a strategy tailored to the local market."
By Choi Ji-won (jwc@heraldcorp.com)
