Toyota is planning a big expansion of its consumer financing infrastructure in China, according to a Japanese media report.
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The Nikkei says that the firm plans to more than double the number of its dealerships in China offering car loans over the next two years. Toyota will be extending its reach in to the country’s interior, the report said.
Toyota currently provides car loans at 300 locations in 40 cities, mainly along the coast. This is to be raised to 800 dealerships in 60 cities nationwide by the end of the next fiscal year.
The overall Chinese dealership network will be expanded from 550 to about 1,000 in two years, Nikkei said.
Toyota offers auto loans in China through a local unit of subsidiary Toyota Financial Services Corp.
Loan desks are to be set up at the dealerships, and both Toyota Financial Services and the dealers will train personnel to handle loans.
The report also noted that while most cars sold in China are purchased with cash, the use of car loans is expected to grow, especially in urban areas.
