Automotive finance penetration surged to 48% or so in China in 2018 and around 52% in 2019, yet still below the global 70%, and expectedly rising to 71% in 2026 with policy incentives and a change in consumption structure.
New York, Sept. 08, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “China Automotive Finance Industry Report, 2020-2026” – https://www.reportlinker.com/p04091849/?utm_source=GNW
Among automotive finance companies, commercial banks, automotive financial leasing companies and internet finance firms that compete in the Chinese automotive finance market, the automotive finance companies hold superiority in licenses, resources and 4S stores, outperforming commercial banks to seize 45% market shares in 2018.
As the policy of used vehicle traffic restriction is cancelled, the used car trade remains on a steady rise in China, reaching 14.92 million units with a year-on-year spike of 8% in 2019, far above the growth rate for new car sales. As of the end of 2019, the used car finance penetration was approximately 14.1% in China, still enormous room for growth compared with over 50% in the United States.
The consumers increasingly accept used cars amid the accelerating urbanization in China, where the used vehicle market will be lucrative to auto finance companies alongside favorable policies such as tax cuts and the abolishment of limited migration for used cars. It is expected that the penetration ratio of used car finance will be up to 34% in China in 2026.
China’s automotive finance industry ushers into the Internet+ era and the internet finance for cars springs up, into which internet giants like Alibaba, Tencent, Baidu, JD.com, and Autohome have set foot successively. For instance, JD Finance rolled out in October 2019 the online instalment product – car IOU (a note acknowledging a debt) providing one-stop auto finance services for buyers.
China’s automotive finance industry is being faster reshuffled especially during the COVID-19 pandemic, and the market concentration gets ever improved. Bolstered by automakers, automotive finance companies are more trusted by clients and will seize more and more market shares as expected to 55% in 2026.
China Automotive Finance Industry Report, 2020-2026 highlights the following:
Global automotive finance industry (development environment, status quo, development in different countries, competitive landscape, etc.);
China automotive finance industry (development environment, history, market size, competition pattern, tendencies, etc.);
Automotive finance market segments in China, including auto financial leasing, used car finance, and internet auto finance;
14 OEM-related automotive finance companies and 5 dealership auto finance companies and 11 other automotive finance related companies.
Read the full report: https://www.reportlinker.com/p04091849/?utm_source=GNW