China to introduce policy to lower auto loan down payment ratio

The National Financial Regulatory Administration told Reuters that after full research and demonstration, the policy on lowering the down payment ratio for passenger vehicle loans is relatively mature and will be introduced soon.

The NFRSA pointed out that further lowering the down payment ratio for passenger vehicle loans will help support auto sales, increase the penetration rate of auto finance, expand the auto consumption market, support the development of the auto industry, and better play the role of financial support for consumption and stable growth.

The NFRSA mentioned that in order to cope with the development trend and market demand of the auto industry under the new situation, it will include the modification and improvement of relevant regulatory provisions on auto credit business in the work plan.

Currently, the minimum initial payment ratio for new energy vehicle loans is 15%, for gasoline vehicles it is 20%, and for used cars it is 30%.

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