Shanghai, April 28 (Gasgoo.com) Global and domestic carmakers in China are anticipating that the Chinese government is set to introduce policies to encourage auto lending in the world's largest car market, Bloomberg reported today.
"We see a lot of potential in auto financing," Joe Hinrichs, Ford's president for the Asia-Pacific region, said in an interview at the Beijing Auto Show. For the next 5 to 10 years, auto financing will be the biggest thing for the industry, said a Shanghai-based auto consultant.
Guangzhou Auto, a partner of Honda and Nissan in China, plans to open an auto financing unit by the end of June, General Manager Zeng Qinghong said. Zhejiang Geely Holding Group is also planning to start an auto credit business, Chairman Li Shufu said.
Beijing Auto will begin offering financing this year. "We're counting on auto financing as a new way to generate growth," President Wang Dazong said recently. "There is a lot of room to develop the business in China."
Ford Motor, General Motors and Toyota Motor's local financing units in China provide loans to consumers as well as dealers, including those that are unable to borrow directly from banks.
Currently, auto financing companies in China mainly provide loans to independent dealers, according to the China Automobile Dealers Association.
