Loans for auto buyers up nearly 50% in Shanghai

Shanghai, an economic powerhouse in eastern China, saw loans for auto buyers grow fastest in credit extension for individuals amid robust sales of motor vehicles in the first five months of this year, the municipal banking regulatory commission said on Saturday.

At the end of May, loans outstanding for auto buyers stood at approximately 17 billion yuan (2.49 billion U.S. dollars) in the city, a growth of 55 percent against the end of May 2008.

China has since 2004, when it approved its first financing firm for motor vehicles, launched 10 such companies, including four in Shanghai.

The four, claiming a two-third share of the municipal auto financing market, recorded 10.6 billion yuan in loans outstanding for auto buyers at the end of May, up 35.29 percent.

The local banking regulatory commission said at the end of May, non-performing loan ratio for auto credits stood at no higher than 1.2 percent, below the average NPL ratio in the city.

According to China Association of Automobile Manufacturers, China sold 4.96 million home-made motor vehicles in the first five months, up 14.29 percent year-on-year.

The total included 3.66 million passenger vehicles, up 21.2 percent.

The passenger vehicles included 2.603 million cars, up 16.54 percent.