China's auto financial analysis of the four pain points more than 3%

Posted on 2/28/2017 10:38:53 AM

In 2016, China won the top 8 years of global car sales, auto industry association data show that the past year China's auto sales reached 24,376,900, an increase of 14.93%. With the explosive growth of the auto market over the past decade, auto finance has also shown its booming outlook.
Third-party research institutions Fuluo Si Sullivan global partner and managing director of Greater China Wang Xin told the first financial reporter, as of the end of 2015, the auto financial brand from the initial three to 25, including both Foreign-owned Ford Motor Finance, Sino-foreign joint venture SAIC General Motors Finance, there are local brands Chery Hui silver auto finance, the overall market size of about 900 billion yuan.
The first financial reporter to obtain the data show that the vehicle factory set up auto finance company, the overall return on assets of the majority of less than 3%, low rate of return on auto finance business, and the annual deposit interest rate is almost the same.
Wang Xin said that the phenomenon of low car financial returns in China is more obvious. First of all, because China's auto finance is still in the early stages of development, the penetration rate is much lower than that of the developed countries, and the consumer's lack of awareness of the relevant business leads directly to the lower rate of return. Secondly, due to the imperfect credit system in China, Industry supervision is more stringent, too cautious attitude to influence the further development of automobile finance shackles.
In Xie rain, China's automobile production capacity is large, there are a lot of cars need to sell out, in this case if the price of the car to maintain a relatively high, according to the price there is no way to clear sales, you can use other ways, So that consumers can not buy a car from the past can buy a car, so as to digest the saturated production capacity.
Internet car finance has not yet formed a closed loop
In the automotive finance market, Internet finance companies are keenly aware of the business opportunities.
Financial leases and second-hand car finance have not yet exploded
Developed countries, the entire penetration rate of 70% to 80%, is due to financial leasing and second-hand car accounting accounted for a very large proportion, leading to China's gap with them is very large.
Xie Yu introduced, auto financing leasing business in China is 2%, mature market in 20% to 30%, the United States in about 20%, where the growth may be faster.

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