Auto finance can be divided into generalized auto finance and narrow auto finance. Broad auto finance refers to the financial activities of financing funds in the production, circulation, purchase and consumption of automobiles. Narrow auto financing usually refers to auto dealers or consumption in the process of automobile sales. The financing and other financial services provided by the company can be divided into automobile consumer finance and automobile wholesale finance. Automobile consumer finance mainly includes consumer credit for end customers, financial leasing, etc.; automobile wholesale finance mainly includes purchasing vehicle loans for automobile dealers. Parts and components loans, showroom construction loans and maintenance equipment loans.
The automobile industry is one of the pillar industries of China and plays an important role in the national economy. In 2017, China's automobile production and sales reached 29 million and 28.87 million respectively; in the first half of 2018, China's automobile production and sales completed 14.085 million and 1406.6 respectively. Ten thousand vehicles, production and sales increased by 4.2% and 5.6% respectively over the same period of the previous year. The sales growth rate was 1.8 percentage points higher than the same period of the previous year. The overall performance was better than the expected at the beginning of the year.
Statistics on national automobile production and sales from January to June 2018
Source: China Business Research Institute Database
According to the "2018-2023 China Automotive Financial Market Prospects and Investment Opportunities Research Report" released by the China Business Research Institute, the scale of China's auto finance market reached 1.16 trillion yuan in 2017, with a growth rate of 21.5%. The gradual opening of the financial market and the improvement of the credit system name, financial leasing companies, Internet finance companies, Internet insurance companies, the market size will be further expanded. It is expected that the size of China's auto finance market will reach 1.39 trillion yuan in 2018, with a growth rate of 19.2%.
Source: China Business Research Institute Database
In recent years, with the rapid development of the Internet, a large number of enterprises have entered the auto finance industry, and a large number of auto finance products will appear in front of consumers in more forms. At the same time, the state has introduced a series of policies to support the healthy and orderly development of auto finance. In the future, China's auto finance market has great potential.
