Shenzhen bank nearly triples auto loans
By Zhang Fengming |
January 16, 2010, Saturday
|
Print Edition
Print Edition
SHENZHEN Development Bank nearly tripled its individual auto loans in 2009 as it rode on China's rising demand as the world's biggest auto market.
The bank approved auto loans worth 6 billion yuan (US$878 million) last year, or a surge of 180 percent from a year earlier, the lender said yesterday. The bank has teamed up with more than 1,500 auto dealers in China to boost the auto loan business.
"China's auto loan market enjoys a huge growth potential banking on the country's rising auto demand and the low auto loan penetration," said Fan Dangsheng, vice president of the Shanghai branch of the mid-sized bank.
In China, auto loans account for about 10 percent of total vehicle sales while such credit accounts for 90 percent of vehicle sales in the United States.
The bank will focus on the auto loan business as it penetrates further into China's retail loan market, Fan said.
China has overtaken the US as the world's top auto market in 2009 when annual vehicle sales accelerated 46.2 percent year on year to 13.64 million units.
The bank now occupies more than 60 percent share of the individual auto loan market in Shanghai after many of its bigger competitors withdrew from the market in 2004 due to rising bad loans.
The bank approved auto loans worth 6 billion yuan (US$878 million) last year, or a surge of 180 percent from a year earlier, the lender said yesterday. The bank has teamed up with more than 1,500 auto dealers in China to boost the auto loan business.
"China's auto loan market enjoys a huge growth potential banking on the country's rising auto demand and the low auto loan penetration," said Fan Dangsheng, vice president of the Shanghai branch of the mid-sized bank.
In China, auto loans account for about 10 percent of total vehicle sales while such credit accounts for 90 percent of vehicle sales in the United States.
The bank will focus on the auto loan business as it penetrates further into China's retail loan market, Fan said.
China has overtaken the US as the world's top auto market in 2009 when annual vehicle sales accelerated 46.2 percent year on year to 13.64 million units.
The bank now occupies more than 60 percent share of the individual auto loan market in Shanghai after many of its bigger competitors withdrew from the market in 2004 due to rising bad loans.
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