China Auto Loan Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

China Auto Loan Market Report is segmented by vehicle type (passenger vehicles, commercial vehicles), by ownership (new vehicles, used vehicles), by end-user (individuals, enterprises), and by loan provider (banks, OEMs, credit unions, and other loan providers). The market sizes and forecasts for the China auto loan market are provided in terms of value (USD) for all the above segments.

China Auto Loan Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

China Auto Loan Market Size

China Auto Loan Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Historical Data Period 2020 - 2023
CAGR 8.00 %
Market Concentration Medium

Major Players

China Auto Loan Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of China Auto Loan Market with other markets in Financial Services and Investment Intelligence Industry

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China Auto Loan Market Analysis

The China Auto Loan Market is expected to register a CAGR of greater than 8% during the forecast period.

Total automobile sales in China are observing a continuous increase, with the sales of passenger vehicles far exceeding the commercial vehicles. Penetration of auto financing is observing a continuous increase in the country, with more than 50% of vehicle buyers taking auto finance. Auto finance companies and commercial banks in the country are emerging as major auto loan providers for expanding the share of Auto loans in the composition of lending in China. Even post-covid, the China government is taking initiatives to expand sales of automobiles through affordable financing.

For passenger vehicles, SUVs and Medium cars occupy more than 60% of the sales, resulting in automobile loan providers designing specific products as per sales and price of these segments. Post-COVID-19, the interest rate on borrowing in China is observing a decline with the accommodative policy of the central bank, resulting in an increasing number of people financing their vehicle purchases. With a rural-urban spread, rural areas exist with a share of 44% of country automobile sales, and the remaining 56% of sales are in urban centers, making auto loan providers focus both on the rural and urban centers.

In the emerging automobile market, as manufacturers are launching Electric vehicles combined with government initiatives, lending companies are offering a lucrative interest rate on Electric vehicle loans to promote their sales and increase their ESG scores. With these efforts, China is leading globally in the sales of electric vehicles, having more than 4 Million sales last year, and even in battery vehicles had the largest share. Lenders are adopting digital lending channels and the availability of long-term loans with competitive interest rates to attract a major share of vehicle buyers to opt for automobile loans.

China Auto Loan Industry Overview

China's auto loan market is fragmented, with a large number of banks, OEN, Credit unions, and financial services providing their loan. Existing players are competing in the market players to provide a competitive interest rate with long-term credit facilities, and digital innovations by lending companies are taking the market in a new direction. Some of the existing players in China's Auto Loan market are China Merchant Bank, China Minsheng Bank, SAIC Finance, China Bank, and Bank of China.

China Auto Loan Market Leaders

  1. China Merchant Bank

  2. China Minsheng Bank

  3. SAIC Finance

  4. China Bank

  5. Bank of China

  6. *Disclaimer: Major Players sorted in no particular order
China Auto Loan Market Concentration
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China Auto Loan Market News

  • July 2022: The China Ministry of Commerce rolled out incentives consisting of easy credit extended to car buyers for raising sales of the NEV sector, which comprised pure electric, plug-in hybrid, and hydrogen fuel-cell cars. This policy raised sales opportunities for major electric-car makers BYD, Xpeng, Li Auto, and Nio Stand in China.
  • June 2023: The Chinese authorities, with recovery from the COVID-19 pandemic, launched a nationwide campaign to promote automobile purchases and raise demand in its auto market. The initiative includes encouraging financial institutions to introduce measures for boosting lending for auto purchases and rolling out policies and measures in favor of car consumption.

Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS AND INSIGHTS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increase In Demand For Passenger Vehicles
    • 4.2.2 Quick Processing of Loan through Digital Banking
  • 4.3 Market Restraints
    • 4.3.1 Declining Business of Banks with Financial Companies Entry
  • 4.4 Market Opportunities
    • 4.4.1 Flexible Interest Rate by Financing Companies Making Raising their Auto Loan Share
    • 4.4.2 Emerging Market of Electric Vehicles Expanding the Auto Loan Market
  • 4.5 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitutes
    • 4.5.5 Intensity of Competitive Rivalry
  • 4.6 Technological Innovations in China Auto Loan Market
  • 4.7 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

  • 5.1 By Vehicle Type
    • 5.1.1 Passenger Vehicle
    • 5.1.2 Commercial Vehicle
  • 5.2 By Ownership
    • 5.2.1 New Vehicle
    • 5.2.2 Used Vehicle
  • 5.3 By End User
    • 5.3.1 Residential
    • 5.3.2 Commercial
  • 5.4 By Loan Provider
    • 5.4.1 Banks
    • 5.4.2 OEM
    • 5.4.3 Credit Unions
    • 5.4.4 Other Loan Providers

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration Overview
  • 6.2 Company Profile
    • 6.2.1 China Merchant Bank
    • 6.2.2 China Minsheng Bank
    • 6.2.3 SAIC Finance
    • 6.2.4 China Bank
    • 6.2.5 Bank of China
    • 6.2.6 BYD Auto Finance
    • 6.2.7 Volkswagon Finance
    • 6.2.8 Herald International
    • 6.2.9 Caixa Bank
    • 6.2.10 China Bohai Bank*

7. MARKET FUTURE TREND

8. DISCLAIMER AND ABOUT US

**Subject to Availability
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China Auto Loan Industry Segmentation

An automobile loan allows a user to borrow money from a lender and use it to purchase different forms of vehicles, which include Passenger and commercial vehicles. The loan is paid back to the issuer in the form of installments over some time with an agreed amount of interest payment.

China's auto loan market is segmented by vehicle type (passenger vehicles, commercial vehicles), by ownership (new vehicles, used vehicles), by end-user (individuals, enterprises), and by loan provider (banks, OEMs, credit unions, and other loan providers). 

The report offers market sizes and forecasts for the China auto loan market in value (USD) for all the above segments.

By Vehicle Type Passenger Vehicle
Commercial Vehicle
By Ownership New Vehicle
Used Vehicle
By End User Residential
Commercial
By Loan Provider Banks
OEM
Credit Unions
Other Loan Providers
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Frequently Asked Questions

What is the current undefined size?

The undefined is projected to register a CAGR of greater than 8% during the forecast period (2025-2030)

Who are the key players in undefined?

China Merchant Bank, China Minsheng Bank, SAIC Finance, China Bank and Bank of China are the major companies operating in the undefined.

What years does this undefined cover?

The report covers the undefined historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the undefined size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

China Auto Loan Industry Report

Statistics for the 2025 China Auto Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Auto Loan analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.