The 2012 China Auto Finance Report forecasts.that China's fledgling auto finance market will more than triple to CNY 1 trillion (USD 160.4 billion) over the next decade on a rise in younger consumers.
By the end of last year CNY 300 billion in auto loans were issued, the report, which was co-published by audit, tax and advisory firm Deloitte and China Minsheng Bank earlier last week, said. But the penetration rate of consumers taking the loans was only 10% far trailing the 70% in more developed car markets like the US.
The report said that low penetration rate was due to consumers in China not being used to taking out loans for car purchases adding the financial industry has been slow to tap the potential as China's personal credit rating system is still not developed to help evaluate the risks of lending.
But the report pointed out the emergence of younger consumers who are more likely to spend money.
