PAY MY WAY

Mexico 2014 | FINANCE | INTERVIEW

One in every four Nissan vehicles purchased in Mexico is financed through NR Finance México. It has signed more than 324,600 active contracts over 10 years in the market

Andrés de la Parra Escandón
BIOGRAPHY
Andrés de la Parra Escandón studied Actuarial Science at UNAM and later specialized in Business Administration at Astural University in Buenos Aires. He has 28 years of experience in the financial sector, mainly in commercial banking with a focus on mortgages and consumer banking. He has worked at institutions including IXE Banking and BMQ Financial Services. He is currently the General Director of NR Finance México.

NR Finance México is the leading company in the financial segment of the automotive sector in Mexico with a 26.4% market share. What is the secret behind your success?

NR Finance México's success came with the growth of Nissan in Mexico; we are the captive company for Nissan, Renault, and Infinity. We have been growing together with the OEMs during a period in which many new opportunities emerged within the automotive sector. In the finance segment of the Mexican automotive industry, three main types of player can be identified: banks, consortiums, and captive companies. After the financial crisis, we saw many banks exit the sector, creating opportunities for companies such as ours. We focused on the dealer network to increase both volume and penetration. All in all, that strategy led us to a hugely successful period, whereby we increased our customer base in Mexico. In this regard, over the past few years we have also created loyalty programs to reward our long-term clients and create a sense of uniqueness.

Could you tell us more about your partnership with Nacional Financiera (Nafinsa)?

A large proportion of our clients are SMEs, a segment of the market in which we work closely with Nafinsa, the governmental bank of Mexico. It provides us with very valuable support to have a stronger position in this particular segment. For example, we offer a special loan for SMEs to help them purchase a fleet of vehicles to carry out their business activity. Thanks to Nafinsa's support, we are able to offer reduced interest rates on our loans as well as smaller initial down-payments, as well as other types of facility. In fact, we have gained more than 55,000 such SME contracts since working with Nafinsa, a partnership that has lasted over two years.

What is your growth strategy for 2014?

We have signed more than 324,600 active contracts over the past 10 years. As a very large captive company for Nissan, Renault, and Infinity, we want to further increase our presence in the market, as we have products that appeal to all types of people. In this context, we have a special interest to become a stronger player in the fleet segment of the market. Additionally, we believe that there are some interesting opportunities in the subprime segment of the sector, one in which very few financial companies currently operate. Finally, we will also continue working in the further specialization of the company in certain regions of the country.

Mexico has the potential to produce 4 million cars per year. What are your views on that, and what are your future goals in this scenario?

We are very much linked to the development of the automotive sector and our strategy should focus on how we would like to support vehicle sales in Mexico. Our loans are focused on creating an additional customer base for the market and supporting the sale of vehicles. We expect to see an increased volume of both production and sales in Mexico over the next few years. Currently, our penetration with Nissan is 46% and 57% with Renault. Nowadays, one in every four vehicles sold in Mexico is a Nissan, and in the financial segment of the sector, one in every four Nissan vehicles sold in Mexico is purchased through our company. Regarding Infinity, we currently account for 68% of the brand's total sales in Mexico, of which 80% are made through leasing, a segment we also want to expand in the near future. I believe the used-car segment is set to bring us very interesting growth opportunities. All in all, I think we have the capability to increase our market share to 28%.