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CAR FINANCE - CHINA - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Banking

No. of Pages : N/A

Chinese consumers’ car financing methods are still conservative, especially consumers in tier two cities. Bank is the main car finance method for consumers. The top three methods that surveyed respondents chose are household savings, car-specific loans from banks and personal savings (48%, 46% and 46% respectively). On the other hand, for those consumers who use car finance, lending rate and monthly repayment have a high importance level when it comes to car finance selection. In addition, the second-hand car market has a great influence on consumers’ choices of car finance.

Table of contents

OVERVIEW
What you need to know
Covered in this Report
Excluded
EXECUTIVE SUMMARY
The market
Figure 1: Car finance market size in China, 2013-17
Car finance market forecast to reach RMB 2,526 billion in 2023
Figure 2: Best- and worst-case forecast of total car finance value, China, 2013-23
Companies and brands
Figure 3: Car finance companies’ market share, 2015-17
The consumer
Bank is the main funding method
Figure 4: Car finance methods, April 2018
30-39-year-old males are core users of car finance
Figure 5: Car finance methods, by age, April 2018
Figure 6: Car finance methods, by gender, April 2018
Major loan range is from 20%-70%
Figure 7: Loan percentage, April 2018
Lending rate and monthly repayment have high importance level for car finance users
Figure 8: Important car loan application factors – TURF Analysis, April 2018
Sufficient savings for car consumption
Figure 9: Reasons for not using car loan services, April 2018
Second-hand market worth paying attention to by car loan providers
Figure 10: General attitudes towards second-hand cars, April 2018
What we think
ISSUES AND INSIGHTS
Second-hand car market has strong effect on new car finance
The facts
The implications
Education of consumers’ understanding about car finance
The facts
The implications
Opportunities for car dealer finance
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Fast growth in the past five years
Car sales volume dominates the market size
Stimulation from consumers’ target car price
MARKET SIZE AND FORECAST
Fast growth in the past five years
Figure 11: Car finance market size in China, 2013-17
Car finance market forecast to reach RMB 2,526 billion in 2023
Figure 12: Best- and worst-case forecast of total car finance value, China, 2013-23
MARKET DRIVERS
Car sales volume dominates the market size
Figure 13: Sales volume and growth rate of cars in China, 2013-17
Car sales volume continues to increase in recent years
Figure 14: Comparison of sales volume of second-hand and new passenger cars, 2010-17
Persistent growth of Chinese finance industry
Figure 15: Chinese finance industry value added and percentage account for GDP, 2010-16
Figure 16: Total third-party payment and growth rate, China, 2012-16
Stimulation from consumers’ target car price
KEY PLAYERS – WHAT YOU NEED TO KNOW
Bank loans dominate the car finance market
Car dealers provide various finance solutions
Volkswagen Financial Services is simplifying the application process
MARKET SHARE
Bank loans dominate the car finance market
Figure 17: Car finance companies’ market share, 2015-17
Intense competition at the top of the market
Figure 18: Top 10 car finance companies, by revenue, 2017
COMPETITIVE STRATEGIES
Car dealers provide various finance solutions
Second-hand car finance
New car finance mode from Tangeche
WHO’S INNOVATING?
Volkswagen Financial Services is simplifying the application process
AI application on auto finance
Partnership with third-party car search websites
THE CONSUMER – WHAT YOU NEED TO KNOW
Bank is the main funding method
Lending rate and monthly repayment have high importance level for car finance users
Consumers will check the second-hand market about the models they want to buy
PAYMENT METHODS
Bank is the main funding method
Figure 19: Car finance methods, April 2018
Figure 20: Car finance methods – Repertoire Analysis, April 2018
Figure 21: Car finance methods of those who have chosen 2 types of financing methods, April 2018
Car dealer loan users are limited in financing choices
Figure 22: Car finance methods, April 2018
30-39-year-old males are core users of car finance
Figure 23: Car finance methods, by age, April 2018
Figure 24: Car finance methods, by gender, April 2018
Figure 25: Car finance methods, by personal monthly income, April 2018
40-49-year-olds like to use savings to buy cars
Figure 26: Car finance methods, by age, April 2018
Different finance choices between city tiers
Figure 27: Car finance methods, by city tiers, April 2018
The higher the education, the more likelihood to use car finance
Figure 28: Car finance methods, by education, April 2018
Replacement car buyers have high tendency to use car finance
Figure 29: Car finance methods, by different car owners and buyers, April 2018
LOAN PERCENTAGE
Major loan range is from 20%-70%
Figure 30: Loan percentage, April 2018
Strengthen loan solutions at a range of 30%-60% of car price
Figure 31: Gap between different loan amount preferred and the general average (benchmark) on the selection of loan providers, April 2018
DECISIONS AT THE END OF FINANCIAL LEASE PLAN
Most consumers choose to pay the rest and own the car
Figure 32: Dealing methods at the end of financial lease plan, April 2018
Female tend to try more models by financial lease
Figure 33: Dealing methods at the end of financial lease plan, by gender, April 2018
CAR LOAN SELECTION FACTORS
Divided opinions on factors that will affect car loan application
Figure 34: Important car loan application factors, April 2018
Lending rate and monthly repayment have high importance level for car finance users
Figure 35: Important car loan application factors – TURF Analysis, April 2018
High-income consumers think beyond the box
Figure 36: Important car loan application factors, by monthly personal income, April 2018
Figure 37: Important car loan application factors, by monthly personal income, April 2018
Figure 38: Important car loan application factors, by monthly personal income, April 2018
Tier two and three city car buyers pay more attention to the loan itself
Figure 39: Important car loan application factors, by city tiers, April 2018
Consumers who value current wealth management return rate
Figure 40: Important car loan application factors, by age, April 2018
Figure 41: Important car loan application factors, by housing situation, April 2018
Figure 42: Important car loan application factors, by monthly household income, April 2018
Different advantages of different car finance methods
Figure 43: Loan methods taken, by select important factors, April 2018
Figure 44: Loan methods taken, by select important factors, April 2018
Figure 45: Loan methods taken, by select important factors, April 2018
Figure 46: Loan methods taken, by select important factors, April 2018
Figure 47: Car finance methods, by city tiers, April 2018
Figure 48: Car prices, by city tiers, July 2017
BARRIERS TO USING CAR LOANS
Sufficient savings for car consumption
Figure 49: Reasons for not using car loan services, April 2018
Generations at the two ends do not like owing debts
Figure 50: Reasons for not using car loan services, by generation, April 2018
Figure 51: Reasons for not using car loan services, by selected demographics, April 2018
Conservative mindsets about car loans in tier two cities
Figure 52: Reasons for not using car loan services, by city tiers, April 2018
ATTITUDES TOWARDS SECOND-HAND CARS
Consumers will check the second-hand market about the models they want to buy
Figure 53: General attitudes towards second-hand cars, April 2018
Sophisticated consumers care about second-hand market when buying a new car
Figure 54: General attitudes towards second-hand cars, by gender and age, April 2018
Figure 55: General attitudes towards second-hand cars, by monthly personal income, April 2018
Figure 56: General attitudes towards second-hand cars, by family structure, April 2018
Figure 57: General attitudes towards second-hand cars, by city tiers, April 2018
30-39-year-old females prefer buying cars appearing frequently on the second-hand market
Figure 58: General attitudes towards second-hand cars, by gender and age, April 2018
Attentions on second-hand market are loan solution-predictable
Figure 59: Dealing methods at the end of financial lease plan, by general attitudes towards second-hand cars, April 2018
Figure 60: Dealing methods at the end of financial lease plan, by general attitudes towards second-hand cars, April 2018
Figure 61: General attitudes towards second-hand cars, by dealing methods at the end of financial lease plan, April 2018
MEET THE MINTROPOLITANS
Figure 62: Car finance methods, by consumer classification, April 2018
Figure 63: Important car loan application factors, by consumer classification, April 2018
APPENDIX – MARKET SIZE AND FORECAST
Figure 64: Total market value of car finance, 2013-23
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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