Robust vehicle sales fuel rapid growth in loans

• Source: xinhua
• [09:15 June 15 2009]
• Comments

Loans for auto buyers in Shanghai grew in the first five months of this year amid robust sales of motor vehicles, the city's banking regulatory commission said last Saturday.

At the end of May, outstanding loans for auto buyers totaled nearly 17 billion yuan (US$2.49 billion) in the city, a jump of 55 percent from the same period a year ago.

China has launched 10 motor vehicle financing companies, including four in Shanghai, since approvals began in 2004.

The four Shanghai firms, claiming a two-third share of the municipal auto financing market, recorded 10.6 billion yuan in outstanding auto purchase loans at the end of May, up 35.29 percent.

The local banking regulatory commission said that the non-performing loan ratio for auto lending was 1.2 percent at the end of May, below the average NPL ratio in the city.

The China Association of Automobile Manufacturers said 4.96 million domestically made vehicles were sold in the first five months in the country, up 14.29 percent year on year.