South Korea’s Hyundai Capital Services Inc. opened its subsidiary in Brazil, becoming the nation’s first credit provider to make a foray into the Latin American country.

Hyundai Capital, an auto lender under Hyundai Motor Group, said Wednesday that it began operation of Banco Hyundai Capital Brasil to provide car loan services to Hyundai Motor customers. It is a 50-50 joint venture with Banco Santander Brasil that has been providing consumer credit services in the country for 49 years.

Hyundai Capital said that the Brazilian car market showed a compound annual growth rate (CAGR) of 11 percent over the past three years, with new car demand expected to reach 2.7 million units this year. The Brazilian subsidiary will provide auto financing to help expand sales of Hyundai Motor that accounts for 11 percent in the market.

It said it will provide differentiated services by combining its long-time experience and know-how with Banco Santander’s broad networks and operation system.

“Based on years of experience in offering auto financing services, Hyundai Capital is playing its part in increasing global sales of Hyundai Motor through localization strategies,” said Hyundai Capital President Hwang Yoo-no. “By providing customized products and services for local people, we will also help Hyundai Motor to expand its presence in Brazil and further in Central and South America.”

Hyundai Capital held an opening ceremony of Banco Hyundai Capital Brasil last month, where Hwang and Banco Santander Brasil CFO Angel Santodomingo participated.

By Kim Gang-rae and Choi Mira

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