Hyundai Capital expands into Indonesia
Hyundai Capital, the finance arm of Hyundai Motor Group, announced Thursday that it has completed the takeover of an Indonesian finance company, thereby entering the Indonesian market.
This follows last month’s acquisition of a financial business license from Australian authorities.
According to the firm, it finalized the process of acquiring Paramitra Multifinance, Wednesday, in an effort to establish an Indonesian corporate body. Hyundai Capital tentatively plans to change its name to Hyundai Capital Indonesia and begin operations in April 2025.
The move is aimed at targeting the Indonesian market, which has seen over 5 percent annual economic growth over the past two years. The country is considered important for Hyundai Motor Group as it represents a key focus in terms of production and sales.
Hyundai Capital said it will strengthen its financing capabilities in the country and establish a sales network in major cities by leveraging its partnership with Sinar Mas, the fourth-largest conglomerate in Indonesia, and Shinhan Indonesia.
The company intends to launch a variety of new products, including car leases, to meet the diverse needs of Hyundai Motor Group’s customers there.
Hyundai Capital is accelerating efforts to establish its Australian entity. Hyundai Capital Australia, a captive finance company wholly owned by Hyundai Motor Group, initiated partial operations in July and is set to expand its business across Australia starting in November.
“Hyundai Capital has established a distinguished competitive edge in marketing and digital sectors by fiercely competing with various financial institutions in the domestic automotive finance market,” Mok Jin-won, CEO of Hyundai Capital, said. “The company is poised to drive a new wave of ‘financial hallyu’ or ‘K-Finance’ in the global consumer finance market.”
Hyundai Capital operates 17 corporate bodies and two branches across 14 countries, including the United States, Canada, Britain, Germany and Brazil.
Despite the worldwide recession last year, it has recorded 158 trillion won ($114.6 billion) in total global assets.