Chery Auto has now set up an auto finance company in an alliance with a local regional bank, becoming the first domestic carmaker to do so.

The firm, Chery Huiyin Auto Finance Co., was established with a capitalisation of 500 million yuan, in which Chery holds an 80% stake and Anhui Commercial Bank the remainder.

All Chery dealers will eventually be prepared to extend loans to car buyers.

Chery received government regulatory approval for the move in April.

It also said then it would trial personal auto loan services in ten cities across the country initially to lower risks.