The penetration of used car finance in China will be 13% in 2018, rising to 25% in 2023.
Auto finance has seen a rising penetration rate in China in recent years, to about 40% in 2017, a gap of 70% with developed countries, but China is chasing faster. It is anticipated in the upcoming several years that the auto finance penetration in China will climb progressively, rising to 58% in 2023 under the impetus of favorable policies and a change in consumer spending habits.
The Chinese auto finance market is booming, with the participation of professional car rental companies, automakers, dealerships, banks and so forth, with the market size estimated at RMB1.2 trillion, with a year-on-year increase of 2.6% in 2018, projected to grow at a rapid rate in the next five years and to reach RMB1.6 trillion in 2023.
In the Chinese auto finance market, there are auto finance companies, commercial banks, auto financial leasing companies, internet auto finance firms, etc., among which commercial banks take a lion’s share of the market but are getting increasingly squeezed, while auto finance companies seize a growing market share: 34.8% in 2017.
The dealership-grown auto finance companies and internet platforms will enjoy more and more market share as a result of marketing channels closer to consumer demand, friendlier product design, the loosening of financing channels, and the improvement of the personal credit system, breaking the monopoly of commercial banks.
Used Car Finance: The used car trade has grown steadily in China with the enforcement of policies like "Several Opinions on Facilitating Easy Trade of Used Cars" over the past two years. From January to September 2018, a total of 10.14 million used cars were traded in China, an upsurge of 12.9% year on year, far higher than the growth rate of new car sales. The huge used car market provides opportunities for used car finance.
Used car finance had a penetration rate of just 8% in China in 2016, which rose to 10% in 2017 under the drive of the increasingly effective used car evaluation system, changing consumer attitudes as well as the policies such as "Guidance for Strengthening Financial Support for New Consumer Fields". It is estimated that the penetration of used car finance will be 13% in 2018, rising to 25% in 2023.
Automobile internet finance: Being incentivized by policies like "Guidance for Facilitating the Healthy Development of Internet Finance", the traditional automakers and dealerships have begun to optimize the original auto finance procedures and experience, while internet giants like Baidu, Alibaba, Tencent and JD (BATJ), as well as internet finance portals, are aggressively entering the market for auto internet finance. In the future, the conventional auto finance services will be offered online stead of offline, continuing the trend towards online service.
China Automotive Finance Industry Report, 2018-2023 highlights the following:
- Global automotive finance industry (overview, development environment, status quo, auto finance development in countries, competitive landscape, etc.);
- China automotive finance industry (overview, development environment, development course, status quo, market size, competitive pattern, auto finance companies’ operation, development tendencies, etc.);
- Auto finance market segments in China (automobile financial leasing, used car finance, automobile internet finance);
- 14 OEM-related auto finance companies, 5 dealership-grown auto finance companies, and 10 other auto finance-related firms.
- The Chinese Version of this Report is Available on Request
1.3 Market Players
2. Global Automotive Finance Industry
2.1 Development Environment
2.2 Status Quo
2.3 Overview of Auto Finance in Major Countries
2.3.1 United States
2.4 Competitive Landscape
2.5 Global Expansion
3. Automotive Finance Industry in China
3.1 Development Environment
3.1.3 Automobile Production and Sales
3.1.4 Car Ownership
3.2 Development Course
3.3 Status Quo
3.4 Market Size
3.5 Competitive Landscape
3.6 Operation of Auto Finance Companies
3.7 Development Trends
3.7.1 Market Share of Auto Finance Companies Grows Further
3.7.2 Used Car Financial Business Grows Rapidly
3.7.3 Cyberization of Used Car Trade
3.7.4 Auto Financial Products Becomes More Diversified
3.7.5 Improved Credit System Pushes the Development of Auto Finance Market
3.7.6 Internet Auto Finance Has Developed into a Trend
3.7.7 Cooperation between Banks and Enterprises Drives Auto Finance
3.7.8 Competition in Auto Finance Industry Intensifies
4. Chinese Auto Finance Market Segments
4.1 Auto Financial Leasing
4.1.2 Development Course
4.1.3 Business Model
4.1.4 Status Quo
4.1.5 Policy Support
4.1.6 Competitive Landscape
4.2 Used Car Finance
4.2.2 Market Size
4.2.3 Price Trend
4.2.4 Market Structure
4.2.5 Huge Potential
4.2.6 Status Quo
4.2.7 Competitive Landscape
4.3 Internet Auto Finance
4.3.3 Status Quo
5. OEM-related Auto Finance Companies
5.1 SAIC-GMAC Automotive Finance Co., Ltd. (SAIC-GMAC)
5.1.3 New Car Finance Business
5.1.4 Used Car Finance Business
5.2 Volkswagen Finance (China)
5.2.3 New Car Finance Business
5.2.4 Used Car Finance Business
5.3 Chery Huiyin Motor Finance Service Co., Ltd.
5.3.3 Revenue Structure
5.3.4 Auto Finance Business
5.3.5 Sales Network
5.4 BYD Auto Finance Company Limited
5.4.3 Auto Finance Business
5.5 Ford Automotive Finance (China) Limited
5.5.3 Auto Finance Business
5.5.4 Sales Network
5.6 Dongfeng Nissan Auto Finance Co., Ltd.
5.6.3 New Car Finance Business
5.6.4 Used Car Finance Business
5.7 Herald International Financial Leasing
5.7.2 Auto Finance Business
5.8 Toyota Motor Finance (China) Co., Ltd.
5.8.3 Auto Finance Business
5.9 BMW Automotive Finance (China) Co., Ltd.
5.9.3 Auto Finance Business
5.10 Yulon Motor Finance (China) Co., Ltd.
5.10.2 Auto Finance Business
5.11 Changan Auto Finance Co., Ltd.
5.11.2 Auto Finance Business
5.12 GAC-SOFINCO Automobile Finance Co., Ltd.
5.12.3 Auto Finance Business
5.13 Genius Auto Finance Co., Ltd
5.14 Beijing Hyundai Auto Finance Co., Ltd.
5.14.3 Auto Finance Business
6. Auto Finance-related Dealers
6.1 Yongda Automobiles
6.1.3 Auto Finance Business
6.1.4 Shanghai Yongda Finance Leasing Co., Ltd.
6.1.5 Yongda Financial Group Holdings Limited
6.2 China Grand Automotive Services Co., Ltd.
6.2.3 Revenue Structure
6.2.4 Gross Margin
6.2.5 All Trust Leasing Co., Ltd.
6.2.6 Auto Finance Business
6.3 Pang Da Automobile Trade
6.3.3 Pang Da ORIX Auto Leasing
6.3.4 Pang Da Leye Leasing Co., Ltd.
6.4 Yaxia Automobile
6.4.3 Revenue Structure
6.4.4 Auto Finance Business
6.5 Shanghai Dongzheng Automotive Finance Co., Ltd
7. Other Auto Finance Companies
7.1 Cango Inc.
7.1.3 Revenue Structure
7.1.4 Auto Finance Business
7.2 Great China Finance Leasing Co., Ltd.
7.2.2 Auto Finance Business
7.3 Zhejiang Jingu Co., Ltd.
7.3.3 Auto Finance Business
7.4 Yixin Group
7.4.3 Auto Finance Business
7.5.2 Auto Finance Business
7.6 Ucar Inc.
7.6.3 Auto Finance Business
7.7 Dafang Car Rental
7.7.2 Auto Finance Business
7.8 Jiayin Financial Leasing
7.8.2 Auto Finance Business
7.9.3 Auto Finance Business
7.10 Weidai Ltd.
7.10.3 Auto Finance Business
- All Trust Leasing Co., Ltd.
- Beijing Hyundai Auto Finance Co., Ltd.
- BMW Automotive Finance (China) Co., Ltd.
- BYD Auto Finance Company Limited
- Cango Inc.
- Changan Auto Finance Co., Ltd.
- Chery Huiyin Motor Finance Service Co., Ltd.
- China Grand Automotive Services Co., Ltd.
- Dafang Car Rental
- Dongfeng Nissan Auto Finance Co., Ltd.
- Ford Automotive Finance (China) Limited
- GAC-SOFINCO Automobile Finance Co., Ltd.
- Genius Auto Finance Co., Ltd
- Great China Finance Leasing Co., Ltd.
- Herald International Financial Leasing
- Jiayin Financial Leasing
- Pang Da Automobile Trade
- Pang Da Leye Leasing Co., Ltd.
- Pang Da ORIX Auto Leasing
- SAIC-GMAC Automotive Finance Co., Ltd. (SAIC-GMAC)
- Shanghai Dongzheng Automotive Finance Co., Ltd
- Shanghai Yongda Finance Leasing Co., Ltd.
- Toyota Motor Finance (China) Co., Ltd.
- Ucar Inc.
- Volkswagen Finance (China)
- Weidai Ltd.
- Yaxia Automobile
- Yixin Group
- Yongda Automobiles
- Yongda Financial Group Holdings Limited
- Yulon Motor Finance (China) Co., Ltd.
- Zhejiang Jingu Co., Ltd.