The head of Volkswagen Finance (VF) China has said the penetration of loans into car retail in the nation has doubled in the past six years, according to English-language news website China Daily.
Joern Kurzrock, chief executive of VF, said finance penetration in car retail in China, where finance from Volkswagen covers its own brand plus Audi, Bentley, Scania, Seat and koda, had risen from 6-7% in 2006 to 15-16% in 2012.
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Although not expecting finance in China to hit the 70% penetration level seen in European markets, Kurzrock added he hoped to make car finance as "sexy" as cars themselves in a national market witnessing changing consumer habits.
China is now the world’s largest market for new car purchases, in which VF has been active since 2004, and has seen the entry of fleet lessors, the approval of joint ventures with bank-owned independents and good noises from other manufacturers’ captive providers in the past year.
richard.brown@timetric.com
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