Sixth Road lords compete with the auto finance who floats?

The automotive financial trillion market has attracted more and more market players to enter, competition has intensified, and traditional automotive financial market players are facing severe challenges.

At present, the market participants in China's auto finance industry mainly consist of commercial banks, auto finance companies, financial leasing companies, auto-operating leasing companies, auto insurance companies, and auto internet finance companies. The auto finance market is still dominated by commercial banks, auto finance companies, and auto company finance companies, but with the involvement of financial leasing companies, car rental companies, consumer finance companies, internet finance companies, and other institutions, plus small loans, guarantees, Pawns, third-party payments, etc., increasingly serve as loan intermediaries, and the traditional automotive financial market players are facing severe challenges.

Under the rookery, who will take the lead and seize the opportunity?

Commercial Banks Are Still Major Suppliers of Auto Consumption Loans

Based on its solid financial strength, commercial banks have almost involved in the financial services sector of the entire industry chain of the automotive industry. In the automobile manufacturing and manufacturing sectors, commercial banks can meet the needs of auto manufacturers to increase production capacity through project loans or mergers and acquisitions loans; through supply chain financing or order financing, they can meet the daily liquidity requirements of production companies at all levels of the auto parts supply chain. In the circulation of automobiles, commercial banks cooperate with manufacturers to cooperate with dealers on advance payment of tripartite network to provide dealers with financing of inventory vehicles with a pledge of representative certification; through credit card installments or consumer loans, consumption is provided to the final consumer. Credit, at the same time, it is worth noting that the vast majority of auto finance companies are also subject to the constraints of the size of capital, and ultimately provide credit support to consumers through interbank lending to commercial banks.

According to incomplete statistics, in terms of dealership inventory financing services that commercial banks prefer, according to incomplete statistics, in 2015, only one stock car financing was used. The bank’s internal and external balances for dealer financing exceeded RMB 500 billion, and the number of cooperative dealers was approaching. 8000 companies have become the preferred financing method for manufacturers to distribute vehicles to distributors. Although the growth rate of domestic auto sales has slowed down in recent years, the overall sales scale has already exceeded 20 million. This type of business is still a bank's key business in the near future. In recent years, due to the substantial increase in the number of dealers, profits have fallen sharply, and some poorly-operated distributors have been shut down or closed down. Commercial banks have begun tightening the dealership financing business and providing access to emerging financial entities. opportunity.

Another important area in which commercial banks are involved in auto finance is auto consumption loans, which are mainly implemented through consumer credit and credit card installments. The data shows that in 2015, the total amount of China's auto consumption financial market was 764 billion yuan, of which, the amount of consumer loans through commercial banks accounted for 49%, the balance of credit card loans for commercial banks accounted for 20%, and the amount of loans used by auto finance companies. Accounting for 24%, and others accounted for 7%, China's average overall automotive credit penetration rate reached 25% in 2015. It can be seen that the main provider of auto consumption loans is still commercial banks.

Automotive finance company develops rapidly

The main business of auto finance companies at this stage includes distributor inventory financing and consumer credit. The target of financing support provided by auto finance companies is mainly authorized dealers of the brand, which can relieve the capital pressure of dealers to a certain extent, but can provide funds. The total amount is limited. With the rapid development of China's auto industry, the number of auto finance companies has increased to 25, and the balance of loans has increased from 6 billion yuan in 2005 to over 390 billion yuan by the end of 2015.

In 2008, the official issuance of the new version of the “Automobile Finance Company Management Measures” cleared the final policy barriers for the development of auto finance companies - financing channels. It is clear for the first time that auto finance companies can carry out financial leasing business and the main business lines of auto finance companies. Determined to dealer inventory financing, consumer credit and financial leasing three sections.

In terms of distributors' inventory financing, due to the high scale of capital and cost of funds, auto finance companies can't independently provide dealers with sufficient and stable inventory financing. As of the end of 2015, the balance of wholesale inventories of China's auto finance companies was 84.052 billion yuan, an increase of 4.161 billion yuan over the end of the previous year, an increase of 5.21% year-on-year, accounting for 21.49% of the total loans, far below the market share of commercial banks.

In terms of consumer credit, car finance companies are increasingly favored by consumers as a service extension for auto manufacturers. Although according to the new version of the "Auto Finance Company Management Approach," auto finance companies need to meet the regulatory requirements of "capital adequacy ratio of not less than 8% and core capital adequacy ratio of not less than 4%", leading to the limited size of auto finance companies, but In recent years, auto finance companies have relied on their advantages of being backed by automakers, and have greatly improved their specialization in vehicle differentiation, market segmentation, and vehicle residual value evaluation. This has led to more consumer demand and upgrading. Required financial products. As of the end of 2015, the balance of retail loans of China's auto finance companies was 305.154 billion yuan, an increase of 68.036 billion yuan over the end of the previous year, an increase of 28.69% year-on-year, accounting for 78.03% of the total loans. The average capital adequacy ratio of auto finance companies is 16%. There is still much room for development. The average non-performing asset ratio of the industry is only 0.54%, which is significantly lower than that of commercial banks.

Auto financing leasing companies have great potential for development

The auto financing and leasing business entered China as early as the 1980s, but it was not affected by the policy environment. With the rapid development of China's financial leasing industry from 2007 to the present and the opening of auto financing and leasing business by auto finance companies in 2008, the auto financing leasing business is gradually on the right track. By 2011, with the entry of various capitals, the car leasing industry is booming. development of.

The overall scale of China's auto financing leasing market remains small, and it is still in the initial stage of development. According to Deloitte's research and statistics, by the end of 2015, the penetration rate of domestic auto financing leases in the auto finance industry was no more than 2%, which is a far cry from the penetration rate of financial leasing that exceeds 50% of mature markets in North America, but it also has huge development. potential.

According to statistics, from 2009 to 2014, the scale of China's auto financing leasing market has grown from 1,000 units to 208,000 units, achieving a compound growth rate of 191%. Based on market experience, it is expected that the auto financing leases will increase annually during 2015-2020. The rate will remain above 50%, and by 2020, it is expected to achieve a penetration rate of 6%.

China's vast auto financing leasing market space has also attracted a large amount of capital in this area. At present, major players in the domestic auto financing leasing market have formed a system that can be broadly divided into bank leasing companies, professional leasing companies, vendor leasing companies, and distribution companies. Corporate leasing companies have four categories.

Car Operating Lease Seven Becomes Long Term Rent

Since the first car rental company was established in Beijing in 1989, China's car rental industry has gradually developed. After nearly 30 years of development, China's car rental industry has made considerable progress.

In 2015, the scale of the Chinese car rental market exceeded 40 billion yuan, and there were more than 8,000 car rental companies. The number of transactions was nearly 80 million, and the fleet size was more than 700,000. However, the average fleet size was still relatively small. This is mainly because: China's car rental market is still at a stage of development, and demand is not yet strong; companies have to maintain a higher rental price in order to survive, and the price is the most important factor in the development of China's car rental business. This prevented the expansion of the market, making it impossible for companies to improve their vehicle renewability and scale expansion capabilities through rolling development.

From the businesses involved in China, Yiyi, Supreme, etc., it can be seen that the main customers in the domestic car rental industry are domestic and foreign companies, and the government and individual car rental accounts for a relatively small proportion, while foreign individuals generally have more leisure exchange replacement leases; at the same time, domestic long-term leases account for a larger proportion. Far higher than foreign countries, the domestic long-term rental market share of passenger cars in 2010 was around 70%, while mature markets abroad were generally around 10%.

China's passenger car rental market is currently dominated by long-term leases, and short-term rental business is still in its infancy, but it is developing rapidly. For light asset needs, multinational companies will use leasing to achieve non-core business fixed-asset investment. And equipment procurement to reduce the asset-liability ratio, the bus reform accelerates the shift of government agencies and state-owned enterprises to the leasing market; forced by the severe pressure caused by environmental pollution and traffic congestion on road resources, there are currently 9 cities in China that implement purchase restriction policies, to some extent This restrains consumers from buying cars and instead adopts low-cost travel modes such as renting a car. According to Deloitte's forecast, driven by these driving factors, the Chinese car rental market is expected to reach a market scale of 58 billion yuan by 2018.

Automobile insurance occupies over 70% of property insurance

After the reform and opening up, China’s motor vehicles have rapidly become popular and the auto insurance business has grown rapidly. At the time, auto insurance accounted for only 20% of the property insurance market share. In the following 20 years, automobile insurance has always played an important role in the insurance market in China, especially in the property insurance market. Since 2000, the proportion of auto insurance business accounts for the property insurance business has been maintained at more than 60%, which plays a decisive role in the development of the property and casualty insurance market.

Since the development of automobile insurance, it has gradually taken on a highly concentrated situation. The three major auto insurance companies, namely People's Insurance, Ping An and Pacific Insurance, occupy a market share of two-thirds of the market, and the top ten automobile insurance companies account for this proportion. It is more than 90%. However, it does not match the high-speed development is the profitability of auto insurance, due to fierce competition and the distortion of the concept of domestic insurance, the three major auto insurance companies did not begin to gradually profit until 2011, but it is undeniable that the Chinese auto ownership Close to 200 million vehicles, the auto insurance market is still huge.

In 2015, the premium for motor vehicle insurance premiums was 619.896 billion yuan, a year-on-year increase of 12.38%, accounting for 77.54% of the property insurance business, and accounting for 73.59% of the property insurance company business.

Judging from the operating profit of auto insurance business, the total premium income of PICC P&C insurance in 2015 was 204.171 billion yuan, a year-on-year growth of 10.4%; the operating profit for that year was 7.386 billion yuan, the highest value in nearly seven years. Ping An Property & Casualty Insurance achieved auto insurance premium income of 131.117 billion yuan, an increase of 18.5% year-on-year; auto insurance business realized a profit of 1.321 billion yuan in 2015, compared to 1.344 billion yuan in 2014, a year-on-year decrease of 1.7%. CPIC’s auto insurance insurance business achieved a turnaround, with auto insurance premium income of 74.961 billion yuan and underwriting profit of 1.373 billion yuan.

From the perspective of the internet property insurance market, the premium income of internet property insurance in 2015 was 76.836 billion yuan, of which the share of People's Insurance and Ping An market share was the highest, which was 43.78% and 30.70%, respectively. Among them, 93.20% of the property insurance business is auto insurance business.

Automotive Internet finance usher in the air

Auto Internet finance refers to auto financial services that are developed through the Internet. The core is the same as traditional auto finance. The main forms include corporate financing, personal credit, mortgage loans, financial leasing, and auto aftermarket financial services. These forms can be applied to the application scenario to provide car owners and car manufacturers with convenient and efficient automotive financial services.

Both the automotive market and the automotive finance industry have ushered in new opportunities for development in the Internet era. The integration of the Internet + automotive industry has evolved from the initial automotive portal and automotive community to the relatively advanced stage of car networking, automotive e-commerce (used car trading platforms), and auto finance platforms.

The first "Internet + Automotive Finance" was born in the traditional auto finance companies. They used the Internet to improve the auto financial process and experience and enrich the channels for getting customers. After 2013, with the explosive growth of China's Internet finance, the evolution of the Internet in automotive finance has accelerated. Internet companies represented by Internet giants such as Ali, Baidu, and Jingdong, and Internet finance platforms including P2P platforms and crowdfunding platforms, Automobile e-commerce, Internet auto financial service platform, and so on, have tested water auto finance, and the automobile internet finance has ushered in the air. At the same time, continuous innovations in the areas of data accumulation, user experience, transaction payments, and other aspects of Internet companies and Internet finance platforms have also created more business models for the automotive financial market.