China’s auto finance which has undergone four stages of development now becomes a market featuring diversified competition, with penetration of 52% and being valued at RMB1,280 billion in 2019.
New York, Sept. 25, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "China Commercial Vehicle Finance Industry Report, 2020-2026" - https://www.reportlinker.com/p05775162/?utm_source=GNW
The sale of commercial vehicle has remained at more than 4 million units over the past two years. Despite the COVID-19 pandemic’s big bite of China’s commercial vehicle sales in the first quarter of 2020, faster progress in major infrastructure, logistics e-commerce and 5G will trigger the surging demand for commercial vehicles. In the first seven months of 2020, China sold 2.8318 million units of commercial vehicle, a like-on-like jump of 14.3%.
In China, the prospering commercial vehicle market invigorates the commercial vehicle finance market. In 2019, the penetration of commercial vehicle finance in China was roughly 55%, far below the 90% in the world’s mature markets, leaving vast room for growth. By 4.324 million commercial vehicles sold in 2019, China’s commercial vehicle finance market boasted a scale of 2.378 million units in 2019.
China’s commercial vehicle finance market is now dominated firmly by automaker-backed and bank-backed financial leasing companies, sweeping a combined 75.5% of the market in 2019. Besides, commercial banks ranked fourth with a 14.9% share. Automaker-backed financial leasing companies stand out for most manufacturers have developed a closed loop in their efforts to transform from manufacture to marketing, and then to services.
The thorough development of commercial vehicle finance has been accompanied by imperfections of such services, like weak foundation of used-car evaluation system, unsound risk control system, blind competition, and huge financial capital demand and insufficient bank capital supply, all of which hinders the development of commercial vehicle financial services in China.
Yet, China’s risk control system for commercial vehicle finance gets improved progressively. For one thing, advancing technologies such as big data offer better solutions to risk control in auto finance; secondly, the support from automakers, insurers, leasing and logistics companies helps perfect the risk control system.
In the forthcoming years, the favorable policies will foster the maturity of Chinese commercial vehicle finance market which is to feature more diversified products, better risk control system, lower credit threshold and higher penetration. It is forecast that the commercial vehicle finance market in China will boast penetration up to 80% and scale of 4.056 million units by 2026.
China Commercial Vehicle Finance Industry Report, 2020-2026 highlights the following:
China auto finance industry (development environment, development history, status quo, market size, competitive landscape, development trends, etc.);
China commercial vehicle finance industry (status quo, main players, competitive landscape, market size, risk control system, etc.);
16 commercial vehicle finance companies (profile, commercial vehicle finance business, etc.).
Read the full report: https://www.reportlinker.com/p05775162/?utm_source=GNW
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