The potential is huge 15 years after auto finance is 225 billion market

Despite the impact of traditional concepts such as the late start of Chinese autos and the Chinese people’s ability to “pay without loans”, “have to borrow without loans,” and “without spending money in the future”, China’s auto credit has a big gap compared with developed countries in Europe and the United States. In recent years, however, with the rapid development of China's auto market, the shift of people's consumption outlook and the increase in financial management, China's auto credit has gradually increased.

After 15 years, auto finance has a market capacity of 525 billion yuan

According to the statistics of the relevant departments, the current domestic auto credit consumption accounts for only 10% of the total car consumption, while about 90% of car sales in the United States are sold through credit, and 80% of consumers in Europe purchase cars through car loans. .

Visit the crowd at the auto show

Since the People's Bank of China formally approved the launch of the auto consumer credit business in 1998, China's auto credit scale has developed rapidly from scratch. In 2001, the nation’s auto consumption credit balance was 43.6 billion yuan. By the end of 2002, it had risen to 94.5 billion yuan. Credit consumption will be a great promotion for car sales.

According to data released by the Central Bank, as of the end of 2008, a total of RMB 158.3 billion was spent on auto consumption loans by financial institutions across the country, including a balance of RMB 74.3 billion from state-owned commercial banks, RMB 31.1 billion from joint-stock banks, and RMB 31.8 billion from auto finance companies. In 2009, the auto loan business of various financial institutions developed rapidly. For example, Shenzhen Development Bank newly increased auto consumption loans by nearly 6 billion yuan, with an increase rate of more than 180%.

The data released by the central bank on July 11 showed that RMB loans increased by 4.63 trillion yuan in the first half of the year. Corresponding figures are that the demand for cars has remained strong. According to the production and sales data released by the China Automobile Association, the production and sales of automobiles in the first half of 2010 were 8.927 million and 9.061 million, respectively.

Zhang Xiaojun, deputy general manager of SAIC General Motors Financial Co., Ltd., stated that China is undoubtedly an important market for General Motors Finance and its future development potential is limitless.

Assistant Secretary of the Shenzhen Development Bank Qiu Wei said flatly that car loans have become one of the major loans for deep development (the total amount of auto loans has already accounted for 10%). At present, SDB has included the automobile retail finance as an important strategy, and the credit line will be fully protected. As the domestic auto market continues to prosper, the bank car loan business will continue to double in the next 2 to 3 years. According to the forecast data of China Association of Automobile Manufacturers, by 2025, China's auto finance industry will have a market capacity of 525 billion yuan.

Credit consumption as an important driver of car sales

At present, in the domestic auto financial market, there are mainly three types of bank loan credit card installment, auto finance companies, and bank auto consumption loans for the purchaser to choose. With the constant warming of auto credit, auto finance is being seen by car companies as a magic weapon to promote sales. Companies such as Shanghai General Motors, Changan Ford Motor Co., Ltd. and Toyota Motor Co., Ltd. have launched auto loan businesses such as zero interest rate and zero down payment.

In January of this year, Jaguar Land Rover launched a three-month “Zero Interest Rate Privilege Appropriation Plan” across the country. The market response is immediate. According to Wang Dongning, Chief Financial Officer of Jaguar Land Rover China, from January to February of this year, Land Rover brand cars are Sales in the Beijing market increased by 200% year-on-year.

The BMW Loan Financial Services Division and partner banks worked together to take the lead in launching BMW branded loan finance products. SAIC General Motors Financial Corporation launches "Balanced Preemptive" and "zero interest rate" plans for Cadillac customers. Ford Financial and Changde Ford launched Mondeo to win the "Half-Cash Semi-loan" financial project. Lexus launched a zero-rate financial solution, FAW Toyota. For its main model Corolla launched a "zero burden" car Sheng Hui activities. It is reported that Dongfeng Nissan is expected to jointly provide Dongfeng Nissan Motor Finance Co., Ltd. with a zero-interest vehicle purchase loan for all car customers during the year. Each year, BMW Financial will launch a special spring and summer program. If a designated vehicle is purchased at a designated dealer within a specified period of time, it will enjoy multiple benefits such as “zero monthly supply” and “zero interest rate”.

In addition, some car companies also look for banks to launch a variety of preferential loan business. For example, Dongfeng Citroen launched the "0 interest rate, 0 interest, 1% bank charges from the bank's credit card loan" campaign; Pentium B70 launched the "zero interest rate, zero for the" financial services; Dongfeng Nissan is conducting Ma Chi booking credit card staging Activities; Beijing Hyundai jointly with Shenzhen Development Bank, China CITIC Bank to provide "1 yuan credit", "regular loans", "elastic loans" and other credit services. Among the Beijing Hyundai models, Yahtaite, Elantra, Elantra, Tucson, Lianxiang, i30, and Minghao all have credit incentives. Among them, i30, Yuet Dong and Tucson can enjoy the preferential policies of zero interest and zero handling fees for one-year loans at China Merchants Bank, China Construction Bank and China CITIC Bank.

Xu Xiaohua, general manager of CITIC Bank Auto Finance Center, said that the domestic auto financial market is still in its infancy. The market potential is still far from being tapped, and the market is not sufficiently supplied. Because of this, the penetration rate of domestic auto loans is far below. At the international level, this market requires all participants to work together to make the entire cake bigger. If the penetration rate is increased from the current 10% to 70% of the international average, even if each participant is only divided into a small piece, the scale It will also be very impressive.