Focus on changing consumer preferences, preferred car models, rising younger generation, reasonable rate of interest and loan tenure in the market are major factors contributing towards development of Car Financing in China.
COVID-19 impact analysis: The car finance industry has recorded continuous investments for its developments and has become a massive contributor to the economic growth. However, this industry has been largely affected, owing to the outbreak of the COVID-19 pandemic leading to economic instability. In addition, owing to increase in unemployment and uncertainty in income results in lower demand and postponement of new car purchases or lease during the pandemic situation. Moreover, shortage in supply of raw materials and logistics has tremendously disrupted the supply chain of automotive new product launches, which, in turn, has led to the disruption in the market growth.
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Vehicle financing is targeted towards younger generations: As younger generations and sophisticated vehicle owners get more comfortable with financing their vehicle purchase, the requirement for financing offerings definitely rises. Auto financing has gained traction in China in the past decade as a younger generation of consumers has become more amenable to financing their vehicle purchases than previous generations. The country’s financing penetration rate has nearly tripled in the last 10 years, reaching about 50% in the end of 2021, up from about 20% in 2018.
The efficiency of loan approval and disbursal of new vehicle retail credit significantly improves: The usage of digital tools and big data credit scoring has accelerated the speed of loan approval and disbursal. In 2021, the proportion of loans approved within one hour (including automatic approval) has risen.
Car finance providers are focused to offer value added services to their customers, expanding existing product & service offerings by implementing technologies such as artificial intelligence, business analytics, and blockchain are anticipated to help improve quality of services and increase the level of customer satisfaction. Furthermore, these technologies allow companies to structure new and used auto loans more accurately. Therefore, expansion of existing products & services by implementation of new technologies is expected to provide lucrative opportunities for car finance providers in the upcoming years.
Analysts at Ken Research in their latest publication “China Car Finance Market Outlook to 2028F- By Category of Vehicles (Passenger Vehicles, Commercial Vehicles), By Ownership of Vehicles (New Vehicles, Used Vehicles), By Category of Lenders (NBFCs, Universal and Commercial Banks, Captives), By Loan Tenure (12-24 Months, 25-48 Months.” by Ken Research observed that China Car Finance Market is in the growing phase. Enhancing Service Offerings, collaborations with partners, expand pipeline with predictive analysis and getting in front of prospects through AI are some of the factors that will contributed to the China Car Finance market growth over the period of 2021-2026F. It is expected that China Car Finance Market will grow at a CAGR of ~% for the above forecasted period.
Key Segments Covered in the report
China Car Finance Market
- By Category of Vehicles
- Passenger Vehicles
- Commercial Vehicles
- By Ownership of Vehicles
- New Vehicles
- Used Vehicles
- By Category of Lenders
- NBFCs
- Universal and Commercial Banks
- Captives
- By Loan Tenure
- 12-24 Months
- 25-48 Months
- 49-60 Months
Key Target Audience
- Existing Auto Finance Companies
- Banks
- OEM Dealerships
- Captive Finance Companies
- Credit Unions
- Private Finance Companies
- New Market Entrants
- Government Organizations
- Investors
- Auto mobile Associations
- Auto mobile OEMs
Time Period Captured in the Report:
- Historical Period: 2018-2023P
- Base Period: 2023P
- Forecast Period: 2023P– 2028F
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Companies Covered:
- Chery HuiYin Motor Finance Service
- Dongfeng Nissan Finance Co
- Changan Auto Finance Co Ltd
- SAIC Motor Financial Holding Management Co
- BYD Auto Finance Company Limited
- Herald International Financial Leasing Co Ltd
- Volkswagen Finance Private Limited
- Genius Auto Finance Co Ltd
- GAC- Toyota Motor Finance (China) Co
- SOFINCO Automobile Finance Co Ltd
OEM’s
- SAIC Motor Corp ltd
- China FAW Group co ltd
- Basic Motor Corp ltd
- BYD CO ltd
- Dongfeng Motor Group
- Great Wall Motor Co ltd
Banks
- Huishang Bank
- Bank of Xi’an
- Caixa bank
- Bank of Jilin
- China Bohai Bank
- Tianjin Binhai Rural Commercial Bank
- BNP Paribas Personal Finance
Key Topics Covered in the Report
- China Automotive Market Overview
- Ecosystem of China Car Finance Market
- China Car Finance Market Evolution and Business Cycle
- China Car Finance Value Chain Analysis
- China Car Finance Market by Credit Disbursed
- China Car Finance Market Segmentation, 2023P
- SWOT Analysis of China Car Finance Industry
- Infrastructure Development Overview of China
- Trends and Developments in China Car finance industry
- Decision Making Parameters for Selecting Car Loan Vendor
- Operational Strategies for China Car Finance Services Market
- Issues and Challenges in China Car Finance Industry
- Government policies affecting the China Car finance Industry
- Government Initiatives for Automotive Industry
- Growth Drivers of China Car Finance Market
- COVID Impact on the China Car Finance Industry
- China Car Finance Market Competition Overview
- Cross Comparison of Major Players in China Car Finance Market
- Strengths and Weakness of Major Players in China Car finance market
- Future Outlook and Market Projections, 2028F
- Best Practices for Building a Successful Car finance company
- Analyst Recommendations
- Industry Speaks
- Research Methodology
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