Marktanalyse - Consumer Automotive Financial Services in China

Marktanalyse - 'Consumer Automotive Financial Services in China'

Consumer Automotive Financial Services in China investigates the market for automotive financial services linked to sales of new and used passenger cars in China. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance and road assistance, and demonstrates the extent to which a market exists for extended warranties and GAP insurance. Using survey results for average take-up rates for finance and leasing propositions at the point of sale, data for the size and growth of the automotive finance and leasing market for consumers in China is provided in terms of gross advances and assets leased for 2007 to 2011 with splits between finance for new and used cars and between finance organised through dealerships at the point of sale and directly with banks or other lending institutions. Moreover, also by means of data for average take-up rates, the markets for creditor insurance, motor insurance, road assistance, extended warranties and GAP insurance are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2011. These are broken down between new and used cars and between new contracts sold during 2011 and in-force business sold in previous years but still being renewed in 2011. The report draws on a survey of 100 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of over 60 automotive brands in China. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in China.

Inhaltsverzeichnis Marktanalyse 'Consumer Automotive Financial Services in China'



TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY .. 1

1.0 INTRODUCTION 3

What is this report about? .... 3

The focus of the report is on financial services related to the sale of passenger cars to individuals . 3

Rationale . 3

The provision of financial services is essential to support both car sales and profitability... .... 3

… with huge diversity in these services between countries and products…... 3

… which have yet to be explored in detail . 3

Methodology 4

Survey of dealers and manufacturers ... 4

Market data ... 5

Computation of market data is based on a complex set of assumptions and variables… . 5

…in order to provide market segmentations in unrivalled detail .. 6

Definitions .... 7

Finance and leasing products 7

Insurance, warranty and assistance products 7

Captive, internal and tied providers . 8

Abbreviations 8

PartnerBASE™ 8

Finaccord 9

2.0 MARKET ANALYSIS 11

Introduction 11

Passenger vehicle data 12

New passenger car sales have soared in recent years... 12

...while the market for used cars still has to catch up .. 12

A large number of brands compete in China 13

Consumer automotive finance and leasing market ... 14

Market size and growth .. 14

New car finance at the point of sale has grown especially fast since 2007… .... 14

...while the volume of financed used cars progresses from a lower base 14

The total value of point-of-sale finance is higher than direct lending ... 15

Types of finance and leasing product . 17

Simple loans are the most common form of financing passenger cars in China .... 17

Consumer automotive insurance, warranty and assistance markets .... 18

Market sizes 18

Extended warranties are the second most important product sold at the point of sale .... 18

Types of motor insurance policy .... 20

A limited form of third-party liability was made compulsory in 2006 .... 20

Automotive dealer survey .. 21

Provision of consumer automotive financial services . 21

Nearly all dealers offer motor insurance... .... 21

... but creditor insurance for car loans has a mixed history in China ... 22

Number and nature of schemes .... 22

Dealers prefer to work with external partners for the provision of finance and leasing and motor insurance 23

Consumer uptake of automotive financial services .... 25

The majority of drivers in China take out motor insurance through dealers .. 25

Competitor dynamics: dealer partnerships ... 27

Finance and leasing: more than four in five dealers offer finance and / or leasing to their customers . 27

Motor insurance: the leading three insurers account for almost 80% of all partnerships with dealers . 29

Extended warranties: customers are more likely to take out extended warranties for used than for new cars .. 31

Road assistance: there are high take-up rates for road assistance where the product is available 33

Automotive manufacturer brand survey . 35

Provision of consumer automotive financial services . 35

Provision rates by manufacturer brands tend to be lower than for dealers ... 35

Competitor dynamics: manufacturer brand partnerships 37

Finance and leasing: several manufacturer brands in China use captive finance providers . 37

Motor insurance: about one in five manufacturers have partnerships with insurance companies .. 39

Extended warranties: extended warranties are normally offered through internal provision . 41

Road assistance: Allianz Global Assistance has established several important partnerships ... 43







Tabellenverzeichnis Marktanalyse 'Consumer Automotive Financial Services in China'



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY .. 1

Key market data for consumer automotive financial services in China, 2011 ... 2

1.0 INTRODUCTION . 3

2.0 MARKET ANALYSIS 11

Passenger car parc and new / used passenger car sales in China, 2007 to 2011 ... 12

Passenger car parc and new / used passenger car sales in China, 2007 to 2011 (data) .. 13

New car registrations in China, segmented by manufacturer brand, 2010 . 14

New / used passenger car finance market in China, segmented by distribution channel: volumes, 2007 to 2011 . 15

New / used passenger car finance market in China, segmented by distribution channel: values, 2007 to 2011 . 16

New / used passenger car finance market in China, segmented by distribution channel: values and volumes, 2007 to 2011 (data) .. 17

% split between the different types of finance and leasing contract sold at the point of sale in China, 2011 18

Total revenues from consumer automotive insurance, warranty and assistance markets in China, 2011 . 19

Total revenues from consumer automotive insurance, warranty and assistance contracts in China, 2011 (data) 20

% split between the different types of motor insurance policy sold at the point of sale in China, 2011 . 21

% of dealers in China offering each type of automotive financial service, 2011 ... 22

Average number of tied and non-tied schemes offered by dealers in China for each type of automotive financial service, 2011 ... 24

Average number of tied and non-tied schemes offered by dealers in China for each type of automotive financial service, 2011 (data) ... 24

% of new and used car purchasers in China acquiring each type of automotive financial service at the point of sale, 2011 .... 26

Provision of finance and leasing by dealers in China, 2011: provision rate, product sources and provider share of non-tied partnerships . 28

Provision of motor insurance by dealers in China, 2011: provision rate, product sources and provider share of non-tied partnerships . 30

Provision of extended warranties by dealers in China, 2011: provision rate, product sources and provider share of non-tied partnerships . 32

Provision of road assistance by dealers in China, 2011: provision rate, product sources and provider share of non-tied partnerships . 34

Comparison of the provision of each type of automotive financial service by manufacturer brands and dealers in China, 2011 .. 36

Provision of finance and leasing by manufacturer brands in China, 2011: provision rate, operating models and weighted provider share of partnerships .. 38

Provision of motor insurance by manufacturer brands in China, 2011: provision rate, operating models and weighted provider share of partnerships .. 40

Provision of extended warranties by manufacturer brands in China, 2011: provision rate, operating models and weighted provider share of partnerships .. 42

Provision of road assistance by manufacturer brands in China, 2011: provision rate, operating models and weighted provider share of partnerships 44

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