Homegrown automakers rush to build financing units

Shanghai, June 3 (Gasgoo.com) With intense competition and thinner profit in the automotive market, China's homegrown automakers now are eager to build auto loan units to spur sales in China.

Brilliance Auto has confirmed it will open an auto financing unit in conjunction with GE Finance Company in October. The financial unit is reported to have a registered investment of 500 million yuan ($71.8 million) and will provide support to Brilliance's independent brands.

Chery has reached an agreement with Huishang Bank, a local commercial bank in Wuhu, to establish a 500 million yuan auto financing joint venture. The deal is still subject to approval from China Banking Regulatory Commission (CBRC).

Also, China's largest MPV producer Jianghuai is reportedly waiting for CBRC's approval to open a similar operation. Last year, seven of China's main auto financing companies saw their revenue surge by more then 50%.