Finance markets

China Auto Capital Markets Report 2022: COVID-19 Hit Auto Sector’s Credit Rating Hard, But Situation Improved in 2021

DUBLIN, May 25, 2022 /PRNewswire/ — “China Automotive Finance Industry Report, 2022-2030” has been added to from offer.

Auto finance is lucrative with the highest profit margin in the international auto industry chain, contributing around 23% of global auto industry profits. Yet auto finance only has a profit margin of 13% in China. In addition to being a powerful motor for the development of the automobile market, automobile financing is the main source of profits for the major automobile groups.

In a well-established automotive market, profits come mainly from the aftermarket, but China The automotive industry, which continues to pivot upstream in the industrial chain in terms of profitability, will, however, shift its focus from upstream automotive production and marketing to the aftermarket where diversified services will enjoy great opportunities in the future. .

In 2021, China produced 26.082 million and sold 26.275 million automobiles, up 3.4% and 3.8% year-on-year respectively, ending the three-year decline since 2018.

With changing consumer attitudes and a host of emerging consumption patterns, the penetration rate of auto finance in China shows an upward trend in recent years, reaching around 52% in 2021, still far behind that of developed countries. Amid the increasing maturity of auto financing and the improvement of the credit system in Chinathere are huge potentials in the auto finance industry of Chinathe penetration increases considerably.

In 2021, the cumulative issuance of auto loan ABS reached 263.51 billion RMBup 35.8% compared to 2020.

In 2021, cumulative auto loan ABS issues increased by 35.8% over one year to 263.51 billion RMB, setting a new record in the interbank bond market. The show in the first three quarters was of almost identical magnitude, while it set an all-time high for a single season, namely 82.9 billion RMB, in the fourth quarter. In 2021, a total of 20 initiators participated in ABS, and they were enthusiastic enough to have more shows, even one initiator launched 5 ABS products.

The above data shows that auto loan ABS in the interbank bond market have fully recovered from the impact of the pandemic, and investor acceptance of it has further improved. In a relatively loose funding environment, the issuance of auto loan ABS in 2022 should support the uptrend in 2021.

Until the end of 2021, 25 auto finance companies had been approved for establishment.

By the end of 2021, a total of 25 auto finance companies had been approved for establishment. Supported by car manufacturers, car finance companies are advantageous in the car industry chain and develop rapidly in recent years with rich channel resources. Based on public data, the total assets of auto finance companies nationwide have grown rapidly over the past few years, with an average growth rate of 19.05% between 2016 and 2020, and recording RMB977.48 billion end of 2020.

COVID-19 has hit the solvency of the automotive sector hard, but the situation has apparently improved in 2021.

Auto sales were seriously devastated during the COVID-19 outbreak in the first quarter of 2020, and have rebounded steadily since then with China strong pandemic control.

On the retail side, auto finance companies are actively cooperating with OEMs to carry out promotions and boost auto sales by enriching loan products, digitizing procedures, lowering loan thresholds and alleviating the burden on car buyers. On the supply chain side, auto finance companies provide stable financial support to dealerships; especially during COVID-19 in 2020, they eased the burden on dealerships by intentionally extending the repayment term and reducing interest and loan fees in response to shortage of funds for some dealerships.

This decision stabilizes the equipment manufacturers’ marketing system. At the end of 2020, the balance of retail loans from automobile finance companies in China has been 782.016 billion RMB, up 8.71% year-on-year; the wholesale inventory loan balance decreased slightly by 3.15% year-on-year to 104.652 billion RMB.

The report on the automotive financial sector in China, 2022-2030 highlights the following:

  • Global auto finance industry (development environment, status quo, auto finance development in countries, competition, global expansion, etc.);
  • China auto finance industry (development environment, history, status quo, market size, competition, operation of auto finance companies, development trends, situation amid pandemic, etc.);
  • China car finance market segments (car leasing, used car finance and internet car finance);
  • 14 OEM related auto finance companies, 5 dealer related auto finance companies and 11 other auto finance related companies.

Main topics covered:

1. Overview
1.1 Definition
1.2 Classification
1.3 Market players

2. Global auto finance industry
2.1 Development environment
2.2 Status quo
2.3 Overview of auto finance in major countries
2.3.1 United States
2.3.2 Germany
2.3.3 Japan
2.4 Competitive Landscape
2.5 Global expansion

3. Auto Finance Industry in China
3.1 Development environment
3.1.1 Policy
3.1.2 Economy
3.1.3 Auto sales
3.1.4 Ownership of a car
3.2 Development courses
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 Auto finance company market share continues to grow
3.7.2 The used car financial sector is growing rapidly
3.7.3 Cyberization of the used car trade
3.7.4 Automotive financial products are diversifying
3.7.5 Improved Credit System Boosts Auto Finance Market Development
3.7.6 Internet Auto Finance has become a trend
3.7.7 Changes in consumer structure
3.7.8 Industry reshuffling is accelerating
3.8 China The auto finance industry in the pandemic

4. China Auto Finance Market Segments
4.1 Automotive leasing
4.1.1 Profile
4.1.2 Development courses
4.1.3 Business model
4.1.4 Status quo
4.1.5 Policy support
4.1.6 Competitive Landscape
4.1.7 Problems
4.2 Used car financing
4.3 Car financing via the Internet

5. OEM Related Auto Finance Companies
5.1 SAIC-GMAC Automotive Finance Co., Ltd. (SAIC-GMAC)
5.1.1 Profile
5.1.2 Operation
5.1.3 New Automotive Finance Business
5.1.4 Used Car Finance Activity
5.1.5 Developments
5.2 Volkswagen Financing (China)
5.3 Chery Huiyin Motor Finance Service Co., Ltd.
5.4 BYD Auto Finance Company Limited
5.5 Ford Automotive Financing (China) Limit
5.6 Dongfeng Nissan Auto Finance Co., Ltd.
5.7 International Herald Leasing
5.8 Toyota Auto Finance (China) Co., Ltd.
5.9 BMW Auto Finance (China) Co., Ltd.
5.10 Yulon Motor Finance (China) Co., Ltd.
5.11 Changan Auto Finance Co., Ltd.
5.12 GAC-SOFINCO Automobile Finance Co., Ltd.
5.13 Genius Auto Finance Co.,Ltd
5.14 Beijing Hyundai Auto Finance Co., Ltd.

6. Car finance related dealerships
6.1 Yongda Automobiles
6.1.1 Profile
6.1.2 Operation
6.1.3 Automotive Finance Activity
6.1.4 Shanghai Yongda Finance Leasing Co., Ltd.
6.1.5 Yongda Financial Group Holdings Limited
6.1.6 Developments
6.2 China Grand Automotive Services Co., Ltd.
6.3 Pang Da Automotive Trade
6.4 Anhui Yaxia Industry Co, Ltd.
6.5 Shanghai Dongzheng Automotive Finance Co., Ltd.

7. Other Auto Finance Companies
7.1 Cango Inc.
7.1.1 Profile
7.1.2 Network
7.1.2 Operation
7.1.3 Revenue structure
7.1.4 Automotive finance activity
7.1.5 Developments
7.2 Greater China Finance Leasing Co., Ltd.
7.3 Zhejiang Jingu Co., Ltd.
7.4 Yixin Group
7.5 E-Capital
7.7 Car rental in Dafang
7.8 Jiayin Financial Leasing
7.9 Strain
7.10 Weidai Ltd.

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