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Auto finance and insurance sectors see fast growth

Source: auto. | Date: Nov. 4

  • A continuous market downturn has increased burden on automakers and dealerships but created a new opportunity for auto finance operators. Present at the 2015 Anting International Auto Finance Forum, Wang Xia, Secretary of the Automotive Sub-council of the China Council for the Promotion of International Trade, said that the Chinese auto market has moved into a period of slow growth, with auto sales keeping mediocre in Sept. and Oct.. Now, the whole auto industry is stepping up efforts in business transformation and upgrading. Meanwhile, new business models, such as car sharing and time-sharing leasing services, are becoming increasingly popular among consumers.

  • Wang believes that the current market situation will create a new strategic opportunity for the auto finance sector, which is expected to play an important role in assets integration, market explorations in undeveloped regions and villages, used car financing, and aftermarket business integration.

  • A report from Roland Berger has revealed that the business revenues earned from the passenger car leasing sector in China increased from RMB 13 billion in 2009 to RMB 42 billion in 2014, and the figure is expected to reach RMB 75 billion by 2019. Roland Berger predicts that the auto finance and insurance sectors will become a new profit-growth point for the whole auto industry in the future, and the market scale would hit RMB 1.8 trillion by 2020.