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Hyundai Motor To Shift ‘Hyundai Capital Services Inc’ To India |
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Written by Ranganathan
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Wednesday, 11 April 2007 |
In order to service its growing customer base, Hyundai Motor is likely to take its installment auto-financing part ‘Hyundai Capital Services Inc’ to India.
W.S. Min, Hyundai Motor India’s Executive Director for marketing and sales said there was a prospect of Hyundai Capital Services being establish in India while the auto manufacturer is doubling up its capability to 6 lakh units.
“With our customer base going up, there is a possibility that that we could look at bringing Hyundai Capital to India,” Mr. Min added.
Hyundai’s supplementary financial division is ‘Hyundai Card’, which is a credit card entity. Hyundai Capital Services possess more than 60 per cent of the market share of the domesticated auto finance business in South Korea.
The linked sources also indicate that one of the chief causes for Hyundai to look in the direction of Hyundai Capital Services is for the reason of the changeable interest rates in India.
According to an administrator with the company that the recent growth in interest rates is likely to decelerate car sales in the present fiscal.
The sources said Hyundai wants its own auto finance company to derisk its sales from such market conditions. As a direct measure to lesser the affect of fresh interest rate increase on its sales, Hyundai unrolled a unique finance plan proposing cheap rates for buyers of Santro.
The interest rate has been abbreviated to 8.99 per cent from the market rate of about 16 per cent for a three-year loan term with a loan ceiling of Rs 3 lakh. The burden will be shared among the dealers, Hyundai Motor and the domestic finance companies.
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