AM Online

China opens up to motor finance

The Chinese car finance market is to be opened up to foreign motor finance companies with major WTO liberalisation of its financial markets next year. And with sales of 1.1m cars this year – an increase of more than 50 per cent on 2001 – the foreign car manufacturers in the Chinese market are ahead of the game in seeking motor finance provider status.

Chinese banks, which have been allowed to write motor finance business since 1998, have made loans worth $6bn in the first nine months of this year – up more than 170 per cent from the same period in 2001.

Foreign car manufacturer have already applied for motor finance provider status either as stand-alone ventures for their captive finance house business, or through joint ventures. Applicants include Volkswagen, GM and Ford.

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