Hyundai Capital Canada Celebrates its 9th Anniversary and Continues to Grow
TORONTO, May 12, 2023 /PRNewswire/ -- Hyundai Capital Canada, Inc. (HCC) recently celebrated its 9th anniversary, and it continues to experience growth on its path be becoming a full-service exclusive captive financial services partner to the Hyundai, Genesis and Kia brands in Canada.
HCC was incorporated in April 2014 and commenced operations in early 2015. At the time, it offered a single product in the form of a consumer vehicle lease through a small Sales and Operations center based in Toronto, Canada. A variety of functions were either performed in-house manually or outsourced to third party vendors.
First year operations yielded $0.5B of lease originations, 12% of all OEM partner retail sales funded via an HCC lease, low Dealer Engagement rates, and a year-end Operating Loss. Fast forward to 2022 and the company has expanded its product suite beyond vehicle leasing to include new and used vehicle subsidized and non-subsidized loans, and a variety of programs and incentives designed to retain existing lease/finance customers in the Hyundai, Genesis and Kia brands. Dealer coverage has expanded, most operational functions have been insourced for greater control and to improve quality, all of which have been recognized and rewarded by the dealer network which has consistently ranked HCC among the top Captive financial services providers in Canada as per independent dealer finance satisfaction studies.
Financial results have also improved, with 2022 lease/loan originations totaling $3.3B, 43% of all OEM partner retail sales funded via a HCC financial product, Financial Assets totaling $6.4B and a healthy Operating Income which achieved 133% of its Business Plan.
As per Mark Di Donato, President and CEO of HCC, "The persistence and dedication of our staff, coupled with the full support of the Hyundai, Genesis and Kia brands and dealers in Canada have combined to deliver amazing growth to our volumes, market share, product offering and dealer satisfaction. We couldn't have accomplished these results without their commitment. Now, the challenge is to continue growing and to continue improving, and I believe that I have the team and the business partners to meet this objective".
HCC's 2022 momentum has carried over into 2023. Following a February Moody's Investors Service rating outlook upgrade to Hyundai Motor Company from stable to positive, HCC successfully issued its third $500M 5-year bond in March with strong investor demand, as evidenced by being five-times oversubscribed. In the same month, HCC successfully launched a fully-branded Hyundai and Genesis Protection Product suite to drive customer satisfaction, dealer profitability and brand/dealership loyalty.
In April, HCC's subsidized new and used loan product volumes increased with Hyundai Canada's decision to reduce the number of Lending partners through which it offers customers subsidized loan financing from four to two (HCC plus one Canadian Bank), as another demonstration of the brand's trust and confidence in HCC's capabilities.
In April, HCC's subsidized new and used loan product volumes increased with Hyundai Canada's decision to reduce the number of Lending partners through which it offers customers subsidized loan incentives from four to two (HCC plus one Canadian Bank), as another demonstration of the brand's trust and confidence in HCC's capabilities.
Finally, HCC is preparing for the future. From exploring EV financial products to support the automotive industry's transition to electrification, to investing in a variety of Operations and IT initiatives focusing on automating and digitalizing to improve efficiencies and service levels while accommodating volume growth, HCC is excited about the future and is looking forward to the next step in its evolution.
About Hyundai Capital Canada
Hyundai Capital Canada, Inc. (HCC), established in 2014, is a financial service subsidiary of Hyundai Motor Group. Headquartered in Toronto, HCC currently provides a variety of customized auto finance products for dealerships totaling 450 nationwide and customers throughout Canada under the Hyundai Motor Finance, Kia Finance and Genesis Finance brands.
SOURCE Hyundai Capital
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