JAC Drive into Auto Loan Sector
ANHUI Jianghuai Automobile Co Ltd plans to cooperate with one of the nation's four asset management companies to set up an auto financing venture, making it the first Chinese auto maker to tap the auto vehicle loan industry for its self-branded models, the firm said recently.
JAC, one of China's leading commercial vehicle producers, would team with China Oriental Asset Management Corp to jointly establish a auto loan company in Hefei, capital of Anhui Province, with a total investment of 500 million yuan (USD62.5 million), according to its document filed with the Shanghai Stock Exchange.
Anhui-based JAC plans to invest 100 million yuan to take 20 % in the venture while its parent, Jianghuai Group, would take 30 % for 150 million yuan, leaving Oriental with the remaining 50 % for 250 million yuan, the statement said.
"With the establishment of the finance unit, JAC would be benefiting from a more complete business strategy for sustained development in the future," the company said.
Once approval is given by the China Banking Regulatory Commission, the auto loan company will offer loans to individual auto buyers as well as to dealers to buy new models and operations equipment.
JAC would become the first domestic auto maker to break into the fledging auto finance industry with its own brand following overseas counterparts including Volkswagen AG's and General Motors Corp's joint ventures in China.
An auto analyst, who did not wish to be named, said the launch of the auto loan business is part of JAC's preparation to support the development of its passenger cars as it meets stiff competition from domestic and foreign auto makers.
JAC, the nation's ninth-biggest auto maker, plans to develop more than 10 passenger car models ranging from mid-range to high-end sedans, compact models as well as sport utility vehicles from next year.
ANHUI Jianghuai Automobile Co Ltd plans to cooperate with one of the nation's four asset management companies to set up an auto financing venture, making it the first Chinese auto maker to tap the auto vehicle loan industry for its self-branded models, the firm said recently.
JAC, one of China's leading commercial vehicle producers, would team with China Oriental Asset Management Corp to jointly establish a auto loan company in Hefei, capital of Anhui Province, with a total investment of 500 million yuan (USD62.5 million), according to its document filed with the Shanghai Stock Exchange.
Anhui-based JAC plans to invest 100 million yuan to take 20 % in the venture while its parent, Jianghuai Group, would take 30 % for 150 million yuan, leaving Oriental with the remaining 50 % for 250 million yuan, the statement said.
"With the establishment of the finance unit, JAC would be benefiting from a more complete business strategy for sustained development in the future," the company said.
Once approval is given by the China Banking Regulatory Commission, the auto loan company will offer loans to individual auto buyers as well as to dealers to buy new models and operations equipment.
JAC would become the first domestic auto maker to break into the fledging auto finance industry with its own brand following overseas counterparts including Volkswagen AG's and General Motors Corp's joint ventures in China.
An auto analyst, who did not wish to be named, said the launch of the auto loan business is part of JAC's preparation to support the development of its passenger cars as it meets stiff competition from domestic and foreign auto makers.
JAC, the nation's ninth-biggest auto maker, plans to develop more than 10 passenger car models ranging from mid-range to high-end sedans, compact models as well as sport utility vehicles from next year.