China Auto Finance Company Development Of Automobile Consumption Credit

China's automotive production volumn and sales volumn reached the toppest of the world in Year 2009. Relative to the booming automotive production and sales volumn, the penetration rate of automotive finance is only at about 10%, while it is respectively at about 80%, 70% and 50% for US, German and Japan. Currently, the main auto financer in China market is commercial banks and Auto Finance Companies, commercial banks occupy the most market share. Auto Finance Companies only take about 20% share. However, Auto Finance Companies occupy 70%~80% market share in developed markets. Comparing with the developed market, the Auto Finance Business of China Auto Finance Companies have big gap regarding credit scale, penetration rate, market share, and etc. The following work has been done in this paper:1. Analyzing the history and current status of Auto Finance in China, indicating its effect to Auto Industry, evaluating the current status of Auto Finance, pointing out the Auto Finace in China have great market prospects.2. Introducing the characteristic, history and current status of Auto Finance Companies and their important position in the Auto Group. Indicating that though the Auto Finance Companies are at the beginning stage in China, they will have great development space in future according to the developed market experience.3. Analyzing the development of Auto Finance Business for China Auto Finance Companies, indicating the strength and inferiority of Auto Finance Companies comparing with Commercial banks.4. Analyzing the opportunities and threats faced by China Auto Finance Companies regarding Auto Finance Business, indicating the good market opportunities and prospects and the main elements restrict the further development of Auto Finance Business. 5. Regarding the inferiorities and threats, this paper pointing out the feasible solution to eliminate such adverse elements.The conclusion of this paper is: Auto Finance Companies will take the dominant market position in China Auto Finance market in future. Auto Finance Companies need to overcome certain adverse elements before reach such goal.