Ford and GM to promote auto lending in China, as 90% of the buyers pay cash

Article by Christian A., on August 26, 2010

China, the world's largest car market, will soon have policies that will promote auto lending. Currently, about 90% of the customers in China pay in cash. That is why many of them opt to buy a cheaper car instead of the one they really prefer.

The carmakers that are eagerly anticipating these policies to be implemented in China include Ford Motor Co., Nissan Motor Co., Beijing Automotive Industry Holding Co. and Guangzhou Automobile Group Co.

In an interview at the Beijing Auto Show late last month, Joe Hinrichs, Ford's president for the Asia-Pacific region, said that the company sees "a lot of potential in auto financing." Carmakers predict that the sales growth in China will fall next year to 10%. This year, the growth is expected to be at 20% while in 2009, sales grew by 46%.

On April 22, Xu Changming, research director at China's State Information Center, was interviewed in Beijing. Xu Changming said that lending money to China's 1.37 billion population for cars would result to a "big stimulus impact" on sales.

Yale Zhang, a Shanghai-based director at CSM Asia, an auto consulting company, is quick to agree. He said that for the next 5 to 10 years, auto financing will be considered "the biggest thing for the industry" as well as its most significant booster. [via autonews]

Topics: ford, gm, china

If you liked the article, share on:

Comments

Recommended

The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
The Audi A7 Sportback, whether you would like to call it a sportback or a four-door coupe, has always been a beautiful car. And this week, the 2019 model year...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries