just-auto.com

CHINA: Volkswagen to finance customers' car buys from next year - report

By just-auto.com editorial team | 13 October 2003

China's bank regulator last week issued rules for vehicle financing companies, giving Volkswagen, General Motors and other overseas car makers access to the country's loans market. Now, according to a wire report in the Detroit News, Volkswagen has said it plans to start lending to Chinese car buyers in the second half of next year. Volkswagen reportedly said loans offered by its Volkswagen Financial Services AG unit will support sales from its two ventures in China, its second-biggest market, where it plans to double unit sales to a million by 2007 from about 500,000 in 2002. China's central bank reportedly said car and home loans increased by 500 billion yuan ($US60 billion) in the first eight months of the year, almost double the growth rate a year earlier. The Detroit News report said less than 20% of vehicles sold in China are financed by loans, and, until now, only the nation's four state-owned banks have been allowed to lend for such purchases.