Chinese Auto Market Stalled

The Chinese automotive market, expected to be the largest growth market for the coming decade has so far not lived up to expectations. Vehicle manufacturers are prepared to meet the expected demand but Chinese finance regulations have not been adapted to allow lending to facilitate purchase of cars. Currently only 10 per cent of private purchases are financed in Chine compared to 75 per cent in the USA.

According to General Motors sales don’t start rising until financing packages are available from the manufacturers. Currently finance is only available from the rapidly expanding Chinese banks where automotive finance business has grown by over 50 per cent per year for the past three years..