English.chinabuses.com: Recently, as the financial crisis penetrates much wider and deeper into the Chinese economy, the world auto financing industry, which had notably boosted the North American, European and Russian auto markets, is suffering the stormy weather. However, the underdeveloped Chinese auto financing market seems indifferent to the global financial crisis.

In a mature auto market, auto financing covers 60 to 80 percent of total transactions, meaning that 6 to 8 out of 10 autos are purchased by loans. However, less than 7 percent of autos were sold in China through loans last year. Figures from Chinese commercial banks revealed Chinese consumers' personal loan balances recorded 3.3 trillion Yuan ($480 billion) in total last year. Nonetheless, loans used for purchasing autos only accounted for 110.7 billion Yuan, even less than 3 percent of housing loans. In such a low-penetration, auto financing market, the raging financial crisis is unlikely to sweep Chinese auto financing like in the US.

Source : english.chinabuses.com

Editor : Wei Yu

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Tags: Auto Financial Market