Ecosystem of China Car Finance Market
China Car Finance Market is at a growing stage and is a fragmented market. The China Car Finance market has seen emergence of more players over the past 5 years. Covid-19 has triggered the market for automotive financing. Few Major Car Finance Providers in China are Huishang Bank, Bank of Xi’an, Caixa bank, Bank of Jilin, Chery HuiYin Motor Finance Service, Dongfeng Nissan Finance Co etc.
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Key Findings
- During covid people in China suffered economic losses and financial crisis which has helped them to realize the price and value of money. This has triggered the demand for financing a car based on down payments and paying rest amounts in the form of monthly EMI.
- Banks lag further behind in dealer satisfaction: In the retail credit segment, captive finance companies continue to lead in dealer satisfaction and leasing companies are catching up quickly, while the performance of banks decreases.
- 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.
- With changing passenger vehicle landscape in China, banks will only finance the hybrid and electric vehicles in order to meet the country’s burgeoning demand towards green economy.
Innovative financing options needed to cater to era of New Energy Vehicles: The era of New Energy Vehicles has arrived, meanwhile, Connected Car, the more disruptive industry, is developing fast. So, it requires more technology innovation in the entire industry. On the other hand, internet giants and other emerging players are actively entering the market, and they impose a great pressure and impact on traditional OEMs and dealers. Given this tide of the times, both traditional and New Car Finance Industry players need to grasp the consumers’ psychology and promote business efficiently.
China’s Automotive Value Pools 2030 will drive the Chinese car finance market like never before: The total size of automotive value pools in China is expected to double by 2030, reaching a market size of more than USD 4 trillion. Trends such as digitization and electric mobility are not only generating increase in revenue but have also led to new and growing value pools. Well-resourced Chinese start-ups are capturing the Chinese automotive market, chasing new value pools and challenging the way things are done. OEMs, suppliers and investors in the car finance industry with ambitions in this dynamic and highly competitive environment urgently need to decide on their own approach to cater to the Chinese market.
Implementation of technologies in existing product lines: Car finance providers are focused to offer value added services to their customers, expanding existing product and 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 and 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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