Research On The Development Of China’s Automobile Financial Industry

With the continuous growth of China’s GDP per capita, automobile consumptionhas changed from difficult to reach for most people to purchase unusual items.2013,the number of China’s private car ownership has exceeded billions of dollars, becamethe largest automobile production and sales power of the world. However, the country’s per capita GDP in2013was$5,414, ranking89th in the world, at an averageannual GDP growth rate was kept at7%-9%of cases, China’s per capita GDP willcontinue to rise, the purchasing power will continue to strengthen, then, the car’sholdings will continue to rise. Meanwhile, the automotive industry has become apillar industry. In Shanghai, for example, in2013, Shanghai’s industrial output valueis3.208888trillion yuan, has a year-to-year growth increase of4.4%. Whichoccupied the automotive industry488.408billion yuan, comparative year-to-yeargrowth increase of15.9%, is the main promoter of Shanghai ’s industrial output.In the developed countries of auto industry in the world such as the U.S.,Germany and Japan, the auto finance industry is very developed. It plays a financingrole of automobile production, manufacturing, sales and service sectors, and plays acrucial role in the development of the automobile industry. In the early20th century,the automobile finance has formed in the United States. Since the21st century, about70%of global car sales revenue sells with the participation of automobile financialservices companies. The higher proportion of the United States, can even reach80%-85%, in India to have at least60%. However, only under20%of China’s car saleswith the participation of automobile consumption loans.And it was predicted thateach time the car loan ratio of consumption increase by5%, it will promote theincrease in car sales by about4%. It’s visibility that the development of automobilefinance can play an important role on the automotive industry, and make a significantcontribution to the entire economic output of society.However, in China, the development of the financial industry behind the UnitedStates sixty years, behind Germany fifty years. It has been halted by People’s Bank ofChina during the emergency. In the situation of more stringent financial regulationand the imperfect development of the financial system, how can automobile financialservices industry play a role in promoting consumer car loans to consumers; providing auto financing to vehicle manufacturers to ensure production processessmooth; providing operating funds to the car dealer to ensure the smooth flow of cars,is currently a major issue in the auto finance industry parts.In this paper, the author combines the actual characteristics of our auto financeindustry, compares the developed auto finance industry development model, analysesthe status, problems, and reasons of China’s auto finance industry. And the authoranalyses practice and enlightenment of the development of foreign automobilefinancial industry.In the first chapter, the article describes the background and significance of thestudy, research ideas, methods, and innovation that can be achieved;The second chapter analyses the current situation and problems of thedevelopment of the automobile financial industry in China, summed up the reasonsfor these problemsThe third chapter summarizes the point that how is foreign automobile financialindustry do and what we can learn from.The fourth chapter, depending on the above analysis, corresponds thecountermeasures to speed up the development of China’s automobile financialindustry.