BNP Paribas Personal Finance strengthens its presence in Mexico
BNP Paribas Personal Finance and KIA Motors Mexico rapidly finalise the deployment of the commercial agreement signed last May.
A few weeks after the signature of the exclusive commercial agreement by BNP Paribas Personal Finance, leading European provider of personal financing, and KIA Motors Mexico, the BNP Paribas subsidiary is in the process of finalising the deployment of this agreement. In a first stage, 21 KIA Motors retailers in Mexico will soon be able to propose the financing solutions developed by BNP Paribas Personal Finance to KIA Motors’ customers. This alliance includes the joint launch of Retail and Wholesale financing operations. KIA Motors Mexico chose BNP Paribas Personal Finance not only for its expertise and know-how in automobile financing but also for its capacity to rapidly roll out the agreement. Meanwhile, KIA is planning to enter the Mexican market as a high-profile game-changer. The alliance strengthens the presence of BNP Paribas Personal Finance in Mexico where both parties have huge ambitions.
Retail and Wholesale Financing,
A partnership built on the expertise of Paribas Personal Finance
Last May, BNP Paribas Personal Finance and KIA Motors Mexico signed an exclusive commercial agreement contingent on certain KIA pre-requirements such as the rapid roll out of the agreement by the bank: in approximately six weeks. BNP Paribas Personal Finance accepted the challenge, which was one of the Korean brand’s decisive criteria.
KIA Motors Mexico also sought the services of BNP Paribas Personal Finance to benefit from the expertise and know-how of the leading European provider of consumer credit.
The alliance resulted in the creation of KIA Finance, the Retail and Wholesale Financing entity for the parties. Shortly after its arrival on the Mexican market, the Korean brand already has a network of 17 groups and 21 national retailers and plans to further expand its influence. Meanwhile, BNP Paribas Personal Finance has huge ambitions on a market that it considers buoyant. It is strengthening its presence in Mexico and reports annual growth rates of over 60%.
The automobile market is a strategic development focus for BNP Paribas Personal Finance. Automobile purchases account for 50% of the consumer credit market worldwide. « BNP Paribas Personal Finance seeks to build a long-term special partnership relationship with both manufacturers and retailers. That is why we have allocated significant financial investments and set up an integrated governance system. By 2016, we plan to reach €15 billion of outstanding loans on the automobile market alone », says Louis-Michel Duray, Automotive Financial Services Director, BNP Paribas Personal Finance.
BNP Paribas Personal Finance & KIA Motors,
Conquering the Mexican market
KIA Motors Mexico plans to become a game-changer on the Mexican automobile market in the second half of 2015. It intends to do so by backing the launch of KIA Finance with offers of preferential rates to both retailers and end customers. These advantages should allow KIA to « gain a competitive edge on the market », explains Horacio Chavez, managing director of KIA Motors Mexico.On the Mexican automobile market which grew by 7%* in 2014, the number of new car registrations has rising steadily since 2011. KIA Motors Mexico intends to develop its network by doubling the number of retailers in 2016 which will allow it to cover the whole of Mexico. The strategic alliance with BNP Paribas Personal Finance, which already had a Mexican presence, is a material advantage.
Statistical data on the Mexican automobile market, source AMIA/JATO/BNP Internal Forecast*
|Number of registrations||905 886||1 214 888|
|Potential||692 699||937 893|
|Already financed||461 371||692 857|