US: Auto financing to fuel growth in emerging markets
The development of the auto financing sector in China, India and Russia will help fuel sales in emerging markets, according to an article by Reuters, which quotes Standard & Poor's research.
The research notes that 85% of cars are financed in India, but just 15-20% in China and Russia. The global average is around 70%.
Vehicle manufacturers in India have recently started to expand their finance operations. In China the government only authorised car loans in 2003, but since then most car makers have applied for permission to start lending.
Independent lenders are also entering the market.