Auto finance industry is flourishing in China with market size approximating RMB850 billion in 2015 and expected to rise by 17.6% from a year ago to around RMB1 trillion in 2016
Compared with mature markets like Europe, the United States and Japan that boast penetration rates above 50%, China's auto finance penetration rate is low, only 35% or so, indicating large room for growth.
As those born in the 1980s and 1990s gradually become the key consumers of cars, changes in consumption habits will promote the development of automotive finance industry, boosting auto finance penetration rate in China to an estimated 50% in 2020.
The Chinese automotive finance market now is still dominated by commercial banks and auto finance companies which together seize a more than 80% share. The remaining less than 20% is shared by financial leasing companies, Internet finance companies and other institutions. However, propelled by favorable policies, these small players will see a further rise in their market shares.
By March 2016, there were 25 auto finance companies approved in China with total assets of RMB419 billion. These players lent a total of RMB391.06 billion in 2015, including retail loans of RMB305.15 billion (78%) and dealership loans of RMB84.05 billion (21.5%).
Among these 25 auto finance companies, several large foreign-funded enterprises including SAIC-GMAC, Volkswagen Finance (China), BMW Automotive Finance (China), and Toyota Motor Finance (China) are highly competitive with rich experience and solid financial strength. The four players booked net interest income of RMB3.8661 billion, RMB2.2921 billion, RMB1.9933 billion, and RMB1.7402 billion in 2015, respectively.
Driven by favorable policies, used car finance and Internet auto finance are ushering in opportunities for development.
Key Topics Covered:
2 Development of Global Automotive Finance Industry
3 Development of Automotive Finance Industry in China
4 Chinese Auto Finance Market Segments
5 OEM-related Auto Finance Companies
6 Auto Dealers
7 Other Auto Finance Companies
- BMW Automotive Finance (China)
- BYD Auto Finance
- CAR Inc.
- China Grand Auto
- Chongqing Auto Finance
- Dafang Car Rental
- Dongfeng Nissan Auto Finance
- Ford Automotive Finance (China)
- GAC-SOFINCO Automobile Finance
- Genius Auto Finance
- Great China Finance Leasing
- Herald International Financial Leasing
- Jiayin Financial Leasing
- Pang Da Automobile Trade
- Toyota Motor Finance (China)
- Volkswagen Finance (China)
- Yaxia Automobile
- Yixin Capital
- Yongda Automobiles
- Yulon Motor Finance (China)
Zhejiang Jingu Co., Ltd.
For more information about this report visit http://www.researchandmarkets.com/research/c5qkdq/china_automotive
Related Topics: Automotive Finance