HYUNDAI OFFICIAL DISTRIBUTOR STARTS WORK WITH ITS CLIENTS WITHIN THE 2022 REDUCED-RATE AUTOMOTIVE LENDING PROGRAM

Today, first clients received invoices to pay for the cars at Hyundai dealership centers. One of the banks participating in the program has begun the process of financing borrowers under the reduced-rate automotive lending program. This means that in the near future Hyundai dealership centers across Kazakhstan will start transferring new cars from the Hyundai Trans Kazakhstan plant to their clients.

According to Denis Kolomatsky, Director of Hyundai distribution in Kazakhstan, until the end of current year the Hyundai Trans Kazakhstan plant is to manufacture 25 thousand more Hyundai vehicles, 20 thousand of which may be bought under the reduced-rate automobile lending program, i.e. cost of these cars does not exceed 15 million KZT.

“Every month since July we are going to deliver four thousand new domestically produced Hyundai vehicles to the market. This is more than enough for the reduced-rate lending under the state tranche allocated for the program. We require dealers to strictly adhere to the car waiting list. If you become aware of any unscrupulous facts, please call 7007. The punishment will be severe!" said Denis Kolomatsky.

He also reminded that the program is designed for 30 years, which means that the revolving and repayable funds under the program will be redirected to new clients wishing to buy the cars. At the same time, it is worth bearing in mind that domestic manufacturers of other brands also participate in the program, so there will be more new vehicles in the market.

With a total shortage of new cars in the world market due to the semiconductor crisis and disruption of supply chains, the demand has exceeded supply dozens of times in Kazakhstan over the past two years. It is noteworthy that at year-end 2021 the share of new domestically produced cars from the total sales came to 62.2% (73,178 units), including cars from Hyundai Trans Kazakhstan - 31% (22,729 units). With this in mind, sales under the reduced-rate lending program from the total sales of new Hyundai vehicles in 2021 amounted to 3% (681 cars).

“This is a small volume for us, the lion's share of Hyundai total sales are cars purchased for cash. The remainder is sold by dealers under other financial programs. It means that the reduced-rate lending program has been designed for consumers in the first instance. Our task is to ensure the production volumes and transparent waiting list”, – stressed Denis Kolomatsky.

It is worthwhile noting that waiting lists for the vehicles in Hyundai dealership centers are the same for both buyers for cash and buyers under various financial programs. The waiting lists for the reduced rate lending are generated and supervised by second-tier banks (STB).

 

The program operating procedure is as follows:

- if the model and configuration of the domestically produced vehicle chosen by the client is available, the client receives an invoice for payment with the mandatory identification of the vehicle VIN (invoice duration period is 5 banking days)

- the client addresses a second-tier bank (STB) participating in the program with the invoice for payment

- the Bank considers the client’s application within five days, evaluates the client's solvency and credit history and, if approved, provides the client with a letter of guarantee. The client must provide the dealership center with the letter of guarantee received from the Bank no later than 6:00 p.m. of the fifth banking day after receiving the invoice for payment at the dealership center, for the car registration

- the procedure of transferring financial means from the Bank to the client directly, as well as processing documents on the car sale, etc. takes up to 20 days.

Banks participating in the 2022 reduced-rate automotive lending program: JSC Eurasian Bank , JSC Bank CenterCredit, JSC Halyk Bank of Kazakhstan, JSC Forte Bank.  This list is not final as the Industrial Development Fund will add partners participating in the program in the course of considering applications submitted by second-tier banks.