Chinese new energy vehicle and battery giant BYD formally reached a strategic cooperation agreement on October 18 with the Brazilian division of Santander, a leader in the domestic auto finance industry. BYD officially entered Brazil in 2021 and launched its first pure electric vehicle for the local market this year.
Through this strategic cooperation, Brazilian consumers can enjoy comprehensive digital auto finance solutions, including credit evaluation, credit review and payment solutions, as well as more flexible and convenient financial loan services when purchasing BYD cars.
“Santander will make available to BYD a 100% digital platform that allows the customer’s credit analysis to be completed in a few seconds. BYD’s consumers will enjoy Santander’s other differentiated financial services for the acquisition of electric vehicle models, such as the possibility of contracting insurance by Santander Auto and diluting the value in the contract installments,” said André de Carvalho Novaes, Director of Santander Brasil’s financing unit.
Also, Santander Bank will provide BYD dealers in Brazil with a completely digital revolving credit line through the “Floor Plan” financial model, providing loan concessions for dealers to buy the company’s cars.
In addition to its automobile business, BYD’s Brazilian branch is committed to providing local new energy solutions such as offering consumers photovoltaic module products through dealers. In Brazil, Santander is also a leading provider of financing solutions within this field, cooperating with BYD dealers in the photovoltaics field.
BYD stated in May that with the release of its Han EV model in Brazil, the firm will aim to further enhance its popularity in the local passenger car market. Moreover, major local car dealers such as Eurobike have cooperated with BYD. It is estimated that by the end of this year, BYD’s Brazilian Branch will join hands with local dealers to cover 45 major cities across the country, and it plans to have 100 designated dealers by the end of 2023.
Brazil’s electric and hybrid powertrain vehicle businesses are booming. According to a report by Estadão, a Brazilian newspaper, sales of electric and plug-in hybrid vehicles in the country increased 57.7% from January to May this year. During the same period, market sales of sedans and light commercial vehicles decreased by 18% year-on-year. Today, electric and plug-in hybrid models account for 2.3% of the industry’s total sales, compared with 0.4% three years ago.