Countries covered: China
Access Asia has published this updated report on auto financing in China covering the market and current state of development of the auto-financing sector in Mainland China. Despite being sluggish on its WTO commitments it now appears that the auto loans business will open to foreign competition.
|
Additional InformationExecutive Summary:
Auto financing loans are effectively the only way for Chinese consumers to purchase cars, unless they have significant savings or can call on family money. They have been available in China since a pilot auto-financing programme was established by state-owned banks in China in May 1996.
In October 1998, the People’s Bank of China (PBOC) authorised the four largest state banks to undertake auto financing: The Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), the Agricultural Bank of China (ABC) and the Bank of China (BoC) started schemes. Since 1999 they have been joined by other local commercial banks including the Shanghai Pudong Development Bank. However, under this plan, individual purchasers have to leave the full purchase price of a car on deposit in a bank while paying off the auto loan.
At present only commercial banks in China are allowed to do car financing schemes under strict regulations issued by the central bank of China, the People’s Bank of China.
Additional problem remain determining credit worthiness, the inability to fluctuate interest rates for car loans and the lack of ownership certificates.
Following China’s entry into the WTO the market should become more liberalised with additional encouragements for the banks to enter the field as well as the establishment of car manufacturer financing agreements.
Despite this many Chinese consumers still claim that they do not want to enter into auto financing deals and prefer to save their cash until they have enough money to purchase the vehicle outright.
Whether or not a desire for auto financing is growing among consumers in China, it remains highly restricted and regulated. However, as part of the World Trade Organisation (WTO) accords signed in November 1999 foreign auto financing in China is part of the wider trade agreement meaning that Chinese consumers will potentially be able to utilise similar financing options to those seen in Europe and America at present - that is to say a mixture of financing through banks, car manufacturers and other financial services providers.
WTO means that, apart from the Chinese banks already providing auto financing, within five years of ratification both foreign banks and car manufacturer credit institutions will also be allowed to offer auto loans to Chinese consumers.
China Contact
Contents
Introduction
Report Coverage
Glossary
Relevant Access Asia Reports
Free Monthly Online Newsletters
Executive Summary
1 China’s Automotive Financing Market
1.1 Auto Financing Market: Total Market Size
Table 1.1 TOTAL MARKET FOR AUTO FINANCING IN CHINA, 1996-2003*
1.2 Auto Financing Market: Auto Financing By Major Lender In China
Table 1.2 AUTO FINANCING BY TYPE OF LENDER, 2002
2. Current Issues
2.1 Current Issues: Legislation
2.2 Current Issues: Problem Loans
2.3 Auto Loans: Continuing Obstacles
3 Outlook
3.1 Outlook: Forecast Trends
3.2 Outlook: Total Market Size
Table 3.1 FORECAST TOTAL MARKET AUTO FINANCING IN CHINA, 2003-2006
4. SWOT Analysis
4.1 Strengths
4.2 Weaknesses
4.3 Opportunities
4.4 Threats
5 Manufacturers Seeking Licenses To Provide Auto Finance In China
5.1 Ford Motor Credit Company
5.1.1 Ford Motor Credit Company: Company Details
5.1.2 Ford Motor Credit Company: Company Background
5.1.3 Ford Motor Credit Company: China Strategy
5.1.4 Ford Motor Credit Company: Financial Results
Table 5.1 FORD MOTOR CREDIT COMPANY: FINANCIAL RESULTS 2001/2002
5.1.5 Ford Motor Credit Company: Future Strategy
5.2 General Motors Acceptance Corporation (GMAC)
5.2.1 GMAC: Company Details
5.2.2 GMAC: Company Background
Table 5.2 GMAC: FINANCIAL RESULTS 2001/2002
5.2.3 GMAC: China Strategy
5.3 Volkswagen Finance Services AG
5.3.1 Volkswagen Finance: Company Details
5.3.2 Volkswagen Finance: Company Background
5.3.3 Volkswagen Finance: China Strategy
5.4 Other Potential Market Entrants
6 Banks Providing Auto Finance In China
6.1 People’s Bank of China
6.1.1 People’s Bank of China: Company Details
6.1.2 People’s Bank of China: Company Background
Table 6.1 PBoC: POST-1998 FUNCTIONS AND ROLE
6.1.3 People’s Bank of China: Structure
Table 6.2 PBoC: DIVISIONS AND DEPARTMENTS
Table 6.3 PBoC: REGIONAL BRANCH STRUCTURE
6.2 Bank of China
6.2.1 Bank of China: Company Details
6.2.2 Bank of China: Company Background
6.2.3 Bank of China: Bank of China International Holdings Ltd
6.2.4 Bank of China: Current Operations
6.2.5 Bank of China: Financial Results
Table 6.4 BoC: FINANCIAL RESULTS, 2001-2002*
6.2.6 Bank of China: Future Strategy
6.3 Agricultural Bank of China
6.3.1 Agricultural Bank of China: Company Details
6.3.2 Agricultural Bank of China: Company Background
6.3.3 Agricultural Bank of China: Current Operations
6.3.4 Agricultural Bank of China: Financial Results
6.4 China Construction Bank
6.4.1 China Construction Bank: Company Details
6.4.2 China Construction Bank: Company Background
6.4.3 China Construction Bank: Current Operations
6.4.4 China Construction Bank: Financial Results
6.4.5 China Construction Bank: Future Strategy
6.5 Industrial and Commercial Bank of China (ICBC)
6.5.1 ICBC: Company Details
6.5.2 ICBC: Company Background
6.5.3 ICBC: Current Operations
6.5.4 ICBC: Union Bank of Hong Kong
6.5.5 ICBC: Financial Results
Table 6.5 ICBC: FINANCIAL RESULTS 2001/2002*
6.5.6 ICBC: Future Strategy
6.6 Bank of Shanghai
6.7 CITIC Industrial Bank
6.7.1 CITIC: Company Details
6.7.2 CITIC: Company Background
6.7.3 CITIC: Current Operations
6.8 China Minsheng Banking Corporation
6.9 Shanghai Pudong Development Bank
6.9.1 Shanghai Pudong Development Bank: Bank Details
6.9.2 Shanghai Pudong Development Bank: Bank Background
6.9.3 Shanghai Pudong Development Bank: Current Operations
6.9.4 Shanghai Pudong Development Bank: Financial Results
6.9.5 Shanghai Pudong Development Bank: Future Developments
7 Contacts
7.1 Trade Organisations
7.1.1 The China Banking Industry Association
7.1.2 The Guangdong Bank Association
7.1.3 China Association of Auto Manufacturers
7.1.4 Information Centre of Beijing Automotive Industry
7.2 Government Departments
7.2.1 Ministry of Finance (MoF)
7.2.2 State Economic & Trade Commission (SETC_
7.2.3 State Planning Commission
8 Relevant Trade Fairs & Exhibitions
8.1 China International Exhibition On Financial Banking Technology & Equipment
8.2 Golden Card Project & Intelligent Control Exhibition
8.3 International Fair For Smart Cards
8.4 Shenzhen International Golden Card Project' Exhibition & Financial Technology Seminar
9 China Automotive Industry Background
9.1 Executive Summary
9.2 Ownership of Vehicles in China
9.2.1 Ownership of Vehicles: Total Vehicle Ownership
Table 9.1 TOTAL PRIVATE VEHICLE OWNERSHIP BY TYPE, 1994-2001
9.2.2 Ownership of Vehicles: Percentage Breakdown of Vehicle Ownership
Table 9.2 % BREAKDOWN OF TOTAL PRIVATE VEHICLE OWNERSHIP BY TYPE,
1994-2001
9.2.3 Ownership of Vehicles: Growth of Vehicle Ownership
Table 9.3 % ANNUAL GROWTH OF TOTAL PRIVATE VEHICLE OWNERSHIP BY
TYPE, 1995-2001
9.2.4 Ownership of Vehicles: Potential Ownership Trends in Light of New Policy
9.3 Total Market
9.3.1 Total Market: Market Volume and Value
Table 9.4 TOTAL AUTOMOBILE SALES VOLUME & VALUE, 1994-2002
9.3.2 Total Market: Sales by Type of Owners
Table 9.5 CAR SALES BY TYPE OF OWNERSHIP, 1994-2002
9.3.3 Total Market: Fashion
9.3.4 Total Market: Idiosyncrasies of Chinese Motoring
9.3.5 Regional Comparisons: China and Asia
Table 9.6 ASIA-PACIFIC AUTOMOTIVES (CARS & TRUCKS) SALES, 2000/2001
9.4 Prices
9.4.1 Prices: Average Unit Prices
Table 9.7 AVERAGE VEHICLE UNIT PRICES, 1994-2002
9.4.2 Prices: Selected Unit Prices
Table 9.8 RETAIL PRICES ON SELECTED CAR MAKES, 2003
9.4.3 Prices: Government Price Controls
9.4.4 Prices: Import Tariffs
9.4.5 Prices: Price Cutting Wars
9.4.6 Prices: Administrative Charges & Taxes
9.4.7 Prices: Vehicle Retirement Regulations
9.4.8 Prices: Transparent Car Consumption Policy
9.5 Market Forecast
9.5.1 Market Forecast: Tenth Five-year Plan for the Automotive Industry
Table 9.9 FORECATS FOR VEHICLE POPULATIONAND DEMAND IN CHINA, 2005
9.5.2 Market Forecast: Tenth Five-year Plan for the Automotive Industry - Development Target
Overall Target
Target for Restructuring
Target for Product Mix Adjustment
Guidelines for Development
9.5.3 Market Forecast: Tenth Five-year Plan for the Automotive Industry - Policies & Measures
Standardising and Fostering the Automotive Market
Improving Legislative Management
Guiding and Promoting the Formation of Large Enterprise Groups
Enhancing Autonomous Development Capability
Promoting the Development of Parts and Components Industry
9.5.4 Market Forecast: Total Sales Value
Table 9.10 FORECAST TOTAL VOLUME & VALUE SALES, 2003-2008
9.5.5 Market Forecast: Forecast Demand Factors
Table 9.11 PREDICTION OF CAR MARKET DEMAND, 2005/2010/2015
Table 9.12 PREDICTION OF CAR DEMAND STRUCTURE, 2005/2010/2015
9.5.6 Market Forecast: Sales by Sector
Table 9.13 FORECAST TOTAL VEHICLE SALES BY SECTOR, 1994-2002
9.5.7 Market Forecast: Sales Breakdown by Sector
Table 9.14 FORECAST BREAKDOWN OF VEHICLE SALES BY SECTOR, 2003-2008
79
9.5.8 Market Forecast: Sales Growth by Sector
Table 9.15 FORECAST BREAKDOWN OF VEHICLE SALES BY SECTOR, 2003-2008
Appendix - Market Background
Market Background
A.1 Fast Facts
A.2 Regions of China
Map 1.1 CHINA: PROVINCES AND MUNICIPALITIES
A.3 Demographics
A.3.1 Demographics: Total Population
Table A.1 TOTAL POPULATION, 1996-2003
A.3.2 Demographics: Population by Location
Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 1997-2003
A.3.3 Demographics: Population Breakdown by Location
Table A.3 POPULATION BREAKDOWN BY URBAN-RURAL DIVIDE, 1997-2003
A.3.4 Demographics: Population by Province
Table A.4 POPULATION BY PROVINCE, 2000-2003
A.3.5 Demographics: Population Density by Province
Table A.5 POPULATION DENSITY BY PROVINCE, 2000-2003
A.3.6 Demographics: Population Concentration
Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2003
A.3.7 Demographics: Population by Gender
Table A.6 TOTAL POPULATION BREAKDOWN BY GENDER, 1997-2003
A.3.8 Demographics: Population by Age Group
Table A.7 POPULATION BY AGE GROUP, 1997-2003
Table A.8 POPULATION BY AGE GROUP (PERCENTAGE), 1997-2003
A.4 Consumer Attitudes
A.4.1 Consumer Attitudes: Overview
A.4.2 Consumer Attitudes: Response to Political Change
A.4.2 Consumer Attitudes: Response to Economic Change
A.4.3 Consumer Attitudes: Changes in Lifestyle
Livelihood
Individual loans
Housing
Possessions
Travel
Entertainment
Health and Fitness
Purchasing Influences
Taboos
A.5 Consumer Wealth
A.5.1 Consumer Wealth: GDP and Cost of Living
Dealing with WTO
China’s New Middle Class
Confident Shoppers
Table A.9 GDP AND COST OF LIVING INDEX, 1997-2003
A.5.2 Consumer Wealth: Provincial Differences in GDP
Table A.10 GDP RANKED BY PROVINCE, 1997-2003
A.5.3 Consumer Wealth: GDP Growth by Province
Table A.11 GDP GROWTH RANKED BY PROVINCE, 1996-2002*
A.5.4 Consumer Wealth: GDP Per Capita by Province
Table A.12 PER CAPITA GDP RANKED BY PROVINCE, 2000-2003
A.5.5 Consumer Wealth: Concentration of Wealth by Province
Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2003
A.5.6 Consumer Wealth: The Major Cities
Table A.13 LEADING CITIES KEY ECONOMIC INDICATORS, 2003
A.6 Households
A.6.1 Households: Overview of Household Conditions
A.6.2 Households: Total Households by Size
Table A.14 NUMBER OF HOUSEHOLDS BY SIZE, 1997-2003
A.6.3 Households: Total households by Urban/Rural Split
Table A.15 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 1997-2003
A1.6.4 Households: Income Earners Per Household
Table A.16 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 1997-
2003
A.7 Employment
A.7.1 Employment: Number of Workers by Sector
Table A.17 NATIONAL EMPLOYMENT BY SECTOR, 1997-2003
A.7.2 Employment: Growth by Sector
Table A.18 GROWTH IN EMPLOYMENT BY SECTOR, 1997-2003
A.7.3 Employment: Number of Workers by Gender
Table A.19 TOTAL NATIONAL WORKFORCE BY GENDER, 1997-2003
A.7.3 Employment: Number of Workers by Habitation
Table A.20 NATIONAL WORKFORCE BY HABITATION, 1997-2003
A.7.4 Employment: Urban Unemployment .
Table A.21 URBAN UNEMPLOYMENT RATES, 1997-2003
A.8 Consumer Income
A.8.1 Consumer Income: Average Incomes by Sector
Table A.22 AVERAGE INCOMES BY SECTOR, 1997-2003
A.8.2 Consumer Income: Growth by Sector
Table A.23 GROWTH IN AVERAGE INCOMES BY SECTOR, 1997-2003
A.8.3 Consumer Income: Average Incomes by Region
Table A.24 AVERAGE INCOMES BY REGION, 1997-2003
A.8.4 Consumer Income: Growth by Region
Table A.25 GROWTH IN AVERAGE INCOMES BY REGION, 1997-2003
A.9 Consumer Market
A.9.1 Consumer Market: Spending Trends
Table A.26 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT
PRICES, 1997-2003
A.9.2 Consumer Market: Per Capita Consumer Expenditure
Table A.27 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT
CURRENT PRICES, 1997-2003
A.9.3 Consumer Market: Retail Sales and Consumer Spending
Table A.28 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE,
1997-2003
A.9.4 Consumer Market: Urban Income and Spending Compared
Table A.29 URBAN AVERAGE ANNUAL INCOME/EXPENDITURE, 1997-2003
A.9.5 Consumer Market: Average Urban Weekly Shopping Basket
Chart A.1 AVERAGE WEEKLY URBAN SHOPPING BASKET, 2003
A.9.6 Consumer Market: Average Rural Weekly Shopping Basket
Chart A.2 AVERAGE WEEKLY RURAL SHOPPING BASKET, 2003
1.9.7 Consumer Market: Average Urban & Rural Weekly Shopping Baskets Compared
Chart 1.3 URBAN & RURAL SHOPPING BASKETS COMPARED, 2003
A.10 Exchange Rates
A.10.1 Exchange Rates: China
Table A.30 AVERAGE ANNUAL EXCHANGE RATES, 1997-2003
A.10.2 Exchange Rates: Hong Kong
Table A.31 AVERAGE ANNUAL EXCHANGE RATES, 1997-2003
More China Automotive Financing Reports
Consumer Automotive Financial Services in China by
Finaccord Ltd.
Consumer Automotive Financial Services in China investigates the market for automotive financial services linked to sales of new and used passenger cars in China. In ...
Consumer Automotive Financial Services in China by
Finaccord Ltd.
Consumer Automotive Financial Services in China investigates the market for automotive financial services linked to sales of new and used passenger cars in China. In ...
Automotives Financing In China: A Market Analysis by
Access Asia
Access Asia has published this new report on auto financing in China as part of the China Contact Market Research report series. The report covers ...
Automotives Financing In China: A Market Analysis by
Access Asia
Access Asia has published this new report on auto financing in China as part of the China Contact Market Research report series. The report covers ...
Special Package: Automobiles and Automotive Financing in China by
Access Asia
This package consists of two reports and is a 10% savings over buying the reports separately. The two reports included are: Automobiles in China ...
See all reports like this >>
More China Reports
D&B Country RiskLine Report: China by
Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
Country Report China February 2011 by
Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...
Country Report China January 2011 by
Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...
D&B Country Report: China by
Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...
Juice – China – a snapshot (2010) by
Mintel - Snapshots
Juice in China by Mintel Global Market Navigator provides you with annual year-end market size data, most recently updated in 2010. The report covers packaged ...
See all reports like this >>
