Report Description

The China automotive loan market is witnessing robust growth in terms of production and demand as China is one of world's largest market for automotives. Moreover, automotive sales have a direct influence on the competition and profitability of the auto-finance industry. China's car loan business is expanding quickly and has enormous growth potential.  Additionally, online automotive loan transactions are becoming extremely common in China due to the entry of Chinese Internet businesses like Alibaba as Ant Financial, an Alibaba subsidiary, launched Mybank, an internet-only bank for consumers and small businesses, making it the most recent private enterprise to enter the Chinese banking industry, these are the certain factors which are influencing the automotive loan industry in China.

 

An automotive loan is which allows an individual to buy a vehicle either for personal use or commercial use. As China is the largest Automobile market globally, both in terms of demand and supply, the market is also witnessing a surge in demand for automotive loan. When an individual gets approved for the loan, the lender will provide a certain amount of money which has to be paidback with interest and over an agreed period of time. On the basis of vehicle type, there are various categories such as two-wheeler loans, Passenger car loans, and commercial vehicle loans. A two-wheeler loan is defined as a help to an individual in purchasing a motorcycle and scooter and later paying it in EMIs. Passenger cars include hatchback, sedan, SUV and MPV and passenger car loan includes loan given toan individual to buy passenger cars. A commercial vehicle loan provides  money to borrowers so that they can purchase a vehicle for business use,such as trucks that can be light duty truck, medium duty truck, heavy duty truck, van and bus.. Additionally, automotive loan is primarily provided through banks, NBFCs (non-banking financial services, OEM (original equipment manufacturer), others (fintech companies) over a specified tenure and interest rate.

According to a report by CAAM (China Association of Automobile Manufacturers), in 2021, China’s production of automotive vehicles was about 26.082 millionwhich was high by 3.4% from 2020 and sold 26.275 million automobiles up by 3.8% year-on-year growth from 2020. According to report of standards and poor rating of China, in 2020, penetration rate for auto financing is almost 50% in China.. According to the report of The Asia Banker 2022, China has a major market share, accounting for over 55% of global EV (Electronic Vehicle) sales volume and 51% of revenue in 2021, followed by the European Union and the United States.

High Sales of Electric Vehicles Fuels the Market Growth

With the rise in sales of electric vehicles, the automotive loan market is also fueling. In the third quarter of 2022, banks in China lowered interest rates for automotive loans in an effort to increase sales of new-energy vehicles (NEVs).). More young individuals are using loans to purchase desired cars, making the industry a new sector of economic growth in China. Two state-owned bank officials stated that commercial lenders had been directed to lower vehicle loan rates in order to promote the NEV industry, which has been requested by Beijing. For instance, as per a sales manager at Yiyou Auto Service in Shanghai, the number of people buying cars on loans is rapidly increasing, and the majority of these purchasers are buying new-energy vehicles.

Expansion of Automotive Consumption Fueling the Market Growth

The primary driver behind the growth of automotive loans is an increase in consumer demand for cars. The raise in household income levels are stimulating the demand for automotive use. Furthermore, the acceleration in the execution of related strategies, such as urbanization and improved consumer ability to repay, is boosting automotive loan demand among consumers. Also, the modification in the existing automobile consumption policies is boosting the demand for automotive vehicles in China. In comparison to before, the overall penetration rate of auto finance in China has expanded significantly due to the rise in automobile consumption, modifications in residents' consumption notions, and improvement in the consumer finance sector. Thus, the automotive loan market is boosting in China.

Popularity of Automotive Loan Among the Younger Generation Boost the Market Growth

In recent years, auto finance has been increasingly popular in China as younger consumers have become more open to financing their automotive purchases than earlier generations. Many tech-savvy Chinese millennials are now adopting the buy-now-pay-later trend as a result of the rising cost of living. For instance, according to a financial report in China, Chinese millennials are increasingly using microloans to pay for everything from expensive products such as new automobiles to modest expenditures like breakfast. Therefore, China’s millennials prefer loans and paying installments which is likely to contribute to the growth of  the automotive loan industry in China during the forecast period.


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Market Segmentation

The China automotive loan market is segmented based on vehicle type, provider type, percentage of amount sanctioned, tenure, regional distribution and competitive landscape. The market is divided into two-wheeler, passenger car, commercial vehicle based on vehicle type. Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial services, OEM (original equipment manufacturer), others (fintech companies). Based percentage of amount sanctioned the market is segmented into less than 25%, 25-50%, 51-75%, more than 75%. By tenure the market is segmented into less than 3 years, 3-5 years, more than 5 years.

Company Profiles

Chery HuiYin Motor Finance Service Co., Ltd.; 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.; Toyota Motor Finance (China) Co., Ltd.; Volkswagen Finance Private Limited; Genius Auto Finance Co., Ltd.; GAC-SOFINCO Automobile Finance Co., Ltd. are among the major market players in of the China automotive loan market.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered   

       Vehicle Type

       Provider Type

       Percentage of Amount Sanctioned

       Tenure

       Region

Regional Scope

North, East, North-East, South-Central, North-West, South-West

Key Companies Profiled

Chery HuiYin Motor Finance Service Co., Ltd.; 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.; Toyota Motor Finance (China) Co., Ltd.; Volkswagen Finance Private Limited; Genius Auto Finance Co., Ltd.; GAC-SOFINCO Automobile Finance Co., Ltd.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 Report Scope:

In this report, the China Automotive Loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • China Automotive Loan Market, By Vehicle Type:
    • Two-Wheeler
    • Passenger Car
    • Commercial Vehicle
  • China Automotive Loan Market, By Provider Type:
    • Banks
    • NBFCs (Non-Banking Financial Services
    • OEM (Original Equipment Manufacturer)
    • Others
  • China Automotive Loan Market, By Percentage of Amount Sanctioned:
    • Less than 25%
    • 25-50%
    • 51-75%
    • More than 75%
  • China Automotive Loan Market, By Tenure:
    • Less than 3 Years
    • 3-5 Years
    • More than 5 Years
  • China Automotive Loan Market, By Region:

o   North

o   East

o   North-East

o   South-Central

o   North-West

o   South-West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the China automotive loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Purchase Decision

4.5.  Sources of Information

4.6.  Customer Satisfaction

4.7.  Challenges Faced After Purchase

5.    China Automotive Loan Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Vehicle Type Market Share Analysis [Two-Wheeler, Passenger Car, Commercial Vehicle]

5.2.2.     By Provider Type Market Share Analysis [Banks, NBFCs (Non-Banking Financial Services, OEM (Original Equipment Manufacturer), Others (Fintech Companies)]

5.2.3.     By Percentage of Amount Sanctioned Market Share [Less than 25%, 25-50%, 51-75%, More than 75%]

5.2.4.     By Tenure Market Share [Less than 3 Years, 3-5 Years, More than 5 Years

5.2.5.     By Regional Market Share Analysis

5.2.5.1.         North

5.2.5.2.         East

5.2.5.3.         North-East

5.2.5.4.         South-Central

5.2.5.5.         North-West

5.2.5.6.         South-West

5.2.6.     By Company Market Share Analysis

5.3.  China Automotive Loan Market Mapping & Opportunity Assessment

5.3.1.     By Automotive Type Market Mapping & Opportunity Assessment

5.3.2.     By Provider Type Market Mapping & Opportunity Assessment

5.3.3.     By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment

5.3.4.     By Tenure Market Mapping & Opportunity Assessment

5.3.5.     By Region Market Mapping & Opportunity Assessment

6.    China Two-Wheeler Automotive Loan Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Provider Type Market Share Analysis

6.2.2.     By Percentage of Amount Sanctioned Market Share Analysis

6.2.3.     By Tenure Market Share Analysis

7.    China Passenger Car Automotive Loan Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Provider Type Market Share Analysis

7.2.2.     By Percentage of Amount Sanctioned Market Share Analysis

7.2.3.     By Tenure Market Share Analysis

8.    China Commercial Vehicle Automotive Loan Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Provider Type Market Share Analysis

8.2.2.     By Percentage of Amount Sanctioned Market Share Analysis

8.2.3.     By Tenure Market Share Analysis

9.    Market Dynamics

9.1.  Drivers

9.1.1.     Expansion of Automotive Usage

9.1.2.     Numerous Financing Channels

9.1.3.     Lower Down Monthly Payment

9.2.  Challenges

9.2.1.     High Competition and Market Saturation

9.2.2.     Surging Concerns

10.  Impact of COVID-19 on Global Automotive Loan Market

10.1.              Impact Assessment Model       

10.1.1.  Key Segments Impacted

10.1.2.  Key Regions Impacted

10.1.3.  Key Provider Type Impacted

11.  Market Trends & Developments

11.1.              Growing Demand for Automotive Loan by younger Generation

11.2.              Reduction in Interest Rate for Electric Vehicles

11.3.              Rising Digitalization of Loan Services

11.4.              Increasing Demand of Commercial Vehicles

11.5.              Growing Auto Loan Related Dealers

12.  Porter’s Five Forces Model

12.1.              Competitive Landscape

12.2.              Buyer Power

12.3.              Supplier Power

12.4.              Threat of New Entrants

12.5.              Threat of Substitutes

13.  SWOT Analysis

13.1.              Strengths

13.2.              Weaknesses

13.3.              Opportunities

13.4.              Threats

14.  Policy & Regulatory Landscape

15.  China Economic Profile

16.  Competitive Landscape

16.1.              Company Profiles

16.1.1.  Chery HuiYin Motor Finance Service Co., Ltd.

16.1.1.1.      Company Details

16.1.1.2.      Product & Services

16.1.1.3.      Financials (As Reported)

16.1.1.4.      Key Market Focus & Geographical Presence

16.1.1.5.      Recent Developments

16.1.1.6.      Key Management Personnel

16.1.2.  Dongfeng Nissan Finance Co.

16.1.2.1.      Company Details

16.1.2.2.      Product & Services

16.1.2.3.      Financials (As Reported)

16.1.2.4.      Key Market Focus & Geographical Presence

16.1.2.5.      Recent Developments

16.1.2.6.      Key Management Personnel

16.1.3.  Changan Auto Finance Co., Ltd.

16.1.3.1.      Company Details

16.1.3.2.      Product & Services

16.1.3.3.      Financials (As Reported)

16.1.3.4.      Key Market Focus & Geographical Presence

16.1.3.5.      Recent Developments

16.1.3.6.      Key Management Personnel

16.1.4.  SAIC Motor Financial Holding Management Co

16.1.4.1.      Company Details

16.1.4.2.      Product & Services

16.1.4.3.      Financials (As Reported)

16.1.4.4.      Key Market Focus & Geographical Presence

16.1.4.5.      Recent Developments

16.1.4.6.      Key Management Personnel

16.1.5.  BYD Auto Finance Company Limited

16.1.5.1.      Company Details

16.1.5.2.      Product & Services

16.1.5.3.      Financials (As Reported)

16.1.5.4.      Key Market Focus & Geographical Presence

16.1.5.5.      Recent Developments

16.1.5.6.      Key Management Personnel

16.1.6.  Herald International Financial Leasing Co., Ltd.

16.1.6.1.      Company Details

16.1.6.2.      Product & Services

16.1.6.3.      Financials (As Reported)

16.1.6.4.      Key Market Focus & Geographical Presence

16.1.6.5.      Recent Developments

16.1.6.6.      Key Management Personnel

16.1.7.  Toyota Motor Finance (China) Co., Ltd.

16.1.7.1.      Company Details

16.1.7.2.      Product & Services

16.1.7.3.      Financials (As Reported)

16.1.7.4.      Key Market Focus & Geographical Presence

16.1.7.5.      Recent Developments

16.1.7.6.      Key Management Personnel

16.1.8.  Volkswagen Finance Private Limited

16.1.8.1.      Company Details

16.1.8.2.      Product & Services

16.1.8.3.      Financials (As Reported)

16.1.8.4.      Key Market Focus & Geographical Presence

16.1.8.5.      Recent Developments

16.1.8.6.      Key Management Personnel

16.1.9.  Genius Auto Finance Co., Ltd.

16.1.9.1.      Company Details

16.1.9.2.      Product & Services

16.1.9.3.      Financials (As Reported)

16.1.9.4.      Key Market Focus & Geographical Presence

16.1.9.5.      Recent Developments

16.1.9.6.      Key Management Personnel

16.1.10.                GAC-SOFINCO Automobile Finance Co., Ltd.

16.1.10.1.    Company Details

16.1.10.2.    Product & Services

16.1.10.3.    Financials (As Reported)

16.1.10.4.    Key Market Focus & Geographical Presence

16.1.10.5.    Recent Developments

16.1.10.6.    Key Management Personnel

17.  Strategic Recommendations/Action Plan

17.1.              Key Focus Areas

17.2.              Target Regions & Countries

17.3.              Target Vehicle Type

17.4.              Target Provider Type

17.5.              Target Percentage of Amount Sanctioned

17.6.               Target Tenure

18.   About Us & Disclaimer

 (Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

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Key factors that are driving the China automotive loan market growth include the broader financing channel, changing consumer behavior, popularity of auto credit loans among younger generation, lower down payment/low monthly payment, etc

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Automotive loans in China have become increasingly challenging to obtain as a result of rising interest rates, vehicle pricing, and financing requirements.

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These factors often include the down payment, credit history, amount financed, period, age of collateral, and vehicle. The better one credits, the lower the interest rate.

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Some key players operating in the China automotive loan market include Chery HuiYin Motor Finance Service Co., Ltd.; 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.; Toyota Motor Finance (China) Co., Ltd.; Volkswagen Finance Private Limited; Genius Auto Finance Co., Ltd.; GAC-SOFINCO Automobile Finance Co., Ltd.

profile

Srishti Verma

Business Consultant
Press Release

China Automotive Loan Market is Dominated by Passenger Cars During the Forecast Period

Dec, 2022

Rising demand for automotive, growing financing channels, and legal and regulatory environment improvements in the auto finance market to drive the China Automotive Loan Market during the projected p