Hyundai Capital Bank Europe will offer
- Wholesale and retail financing solutions linked to the sales of Hyundai and Kia cars
- Full service fleet management
- Act as an intermediary for insurance and warranty products of insurance companies in Europe
IN A major boost for Hyundai and Kia car sales in Europe, Hyundai Capital Services, the automotive financing arm of Hyundai Motor Group, has received the European Central Bank’s (ECB) approval to establish Hyundai Capital Bank Europe (HCBE).
HCBE will be headquartered in Frankfurt and start operations in December, gradually offering wholesale and retail financing solutions linked to the sales of Hyundai and Kia brand cars, full service fleet management, acting as an intermediary for insurance and warranty products of insurance companies in Europe and offering deposit-taking business for private customers and dealers.
With initial capital of 67.1 million euros (about £60m), HCBE is 80% financed by Hyundai Capital Services and the rest by Kia Motors. HCBE received the licence from ECB after a deep review by the German financial authority.
With this green light, Hyundai Capital Services Deutschland GmbH, which has operated as a consulting firm providing financing solutions to Hyundai and Kia brands since 2010, will change its name to Hyundai Capital Bank Europe.
It will provide direct automotive financing services – dealer financing, instalment financing, lease, insurance brokerage and others – to consumers.
Moreover, the ECB authorisation is expected to assist Hyundai Capital when seeking business expansion within European Union states.
A Hyundai Capital spokesman said: “Hyundai Capital Bank Europe will compete with global powerhouses in Frankfurt, the heart of European finance.
“This is very different from other Korean financial institutions that have been targeting Korean consumers or businesses overseas.
About Hyundai Capital Services
- Hyundai Capital Services is Korea’s No. 1 provider of consumer financing products, including automotive financing, auto leasing services, personal loans and home mortgages.
- Established in 1993, the company is a financial service unit of Hyundai Motor Group, and has businesses in the UK, US, China, Canada and Germany
“According to market data, about 75% of car buyers in Germany use auto financing programs. That ratio of import car brands including Hyundai and Kia cars is 73% and we expect to bring this figure to be above average.
“HCBE will support Hyundai Motor Group sales,” he added.
Hyundai Motor Group has been expanding its presence in the German automotive market, one of the largest in Europe. Hyundai Motor and Kia Motors are expected to sell 94,000 units and 58,000 units of cars respectively by the end of the year, taking over 4.4% of the local market as the third-largest seller among foreign car brands in Germany.
Hyundai Capital operates in the U.K., Hyundai Capital United Kingdom, a joint venture with Santander Consumer Finance. It also has entities in China, the U.S. and Canada.