Hyundai Capital Services Inc., a financial services subsidiary of Hyundai Motor Group, and CGI Finance, a unit of Societe Generale Group, have launched an auto finance joint venture in France to support the South Korean carmaker’s vehicle sales in Europe.
The JV, Hyundai Capital France, will support Hyundai Motor Co.'s and Kia Corp.'s French operations and their dealer network of 400 sites in lease and loan financing for new vehicles and used vehicles in addition to serving as a sales agent for relevant insurance products, Hyundai Capital said on Tuesday.
"France is a strategically significant market for Hyundai Motor Group and we are very glad to form a joint venture with Societe Generale,” said Kim Hyun-joo, executive vice president and head of Hyundai Capital’s global business division.
“Hyundai Capital, as a captive finance provider, aims to support Hyundai Motor Group's meaningful expansion in France with tailored products and services."
Kia's EV6 A major sales destination for Hyundai and Kia vehicles in Europe, France is one of the most important markets for Hyundai Motor Group.
The group has opted for the strategy of setting up a captive finance company in France to further support vehicle sales in the European market by providing tailored financial services for customers and dealers, according to Hyundai Capital.
The JV is Hyundai Capital’s 10th overseas financial entity. Within Europe, it is the fifth entity after the ones in Germany, the UK, Russia and Italy.
With the establishment of Hyundai Capital Bank Europe in Germany in 2016, Hyundai Capital has vowed to enter into additional countries in Europe. Before France, the company opened a branch in Italy in 2021.
Hyundai Capital’s overseas operations account for more than two-thirds of its total assets of 110 trillion won ($92.2 billion) as of the third quarter of last year.
The auto financing company is expected to strengthen its overseas business as Mok Jin-won, who’s been leading the company’s overseas sales, took sole charge of the company as chief executive last year after Chung Tae-young, vice chairman and CEO of Hyundai Card Co., Hyundai Commercial Co. and Hyundai Capital, stepped down from his post at Hyundai Capital in September.
Hyundai Motor's Tucson SUV RECORD-HIGH MARKET SHARE IN EUROPE
In France, Hyundai Motor and Kia sold 46,966 and 45,345 cars, respectively, last year. The sales figures were up 39.6% and 15.6% each from a year earlier.
The two automaking units of Hyundai Motor Group performed well across Europe, with their market share rising to a level never seen before.
According to industry data, the two companies sold a combined 1.02 million cars in Europe, up 21.1% from the previous year.
Hyundai’s 2021 European sales increased 21.6% while Kia’s sales rose 20.6%.
Their combined market share rose to their highest level of 8.7% from 7% in 2020.
With their market share, the two Korean companies ranked fourth, beating their immediate rival BMW.
Hyundai Capital's headquarters building Volkswagen Group was the top auto seller with a 25% market share, followed by Stellantis (20.2%) and Renault (9.3%).
Hyundai sold 147,979 units of its popular mid-size SUV Tucson in the European market last year.
For Kia, the Ceed compact hatchback, the Niro crossover SUV and the long-running Sportage SUV led its growth in Europe.
The two companies also saw decent growth in their electric vehicle sales.
Hyundai’s IONIQ line of EVs and Kia’s EV6 sold a combined 135,408 units, up 41.2% from the previous year.
Write to In-Hyeok Lee and Hyung-Kyu Kim at twopeople@hankyung.com In-Soo Nam edited this article.
