Hyundai Motor Group has established an auto financing venture in China with BAIC Group to help boost sales of Hyundai and Kia models in the country.

The aim for Hyundai is to get almost half of its Chinese customers to purchase on loans within the next three years (which compares with an estimated 10% loan financed now). The company hopes the move will improve the competitive position for its brands in China. GM, for example, has been offering auto finance in China for considerably longer (since 2004 with the GMAC-SAIC Automotive Finance Co.).

The Hyundai financing arm will provide loans to retail buyers and dealers across China. The venture, called Beijing Hyundai Auto Finance Co, will be 60% owned by the Hyundai Motor Group while BAIC Group will hold 40%.

The move also comes amid concerns over China's slowing economy and car market.