With the expansion of service trade following China's accession to the WTO, auto finance has become a hot topic among marketing professionals. As a key driver in the comprehensive marketing of automobiles in the post-industrial era, auto finance is showing great potential for growth. At the Shanghai International Automobile Finance Forum held at the end of November 2003 by the Shanghai Automotive Financial Services Promotion Association, experts from the People’s Bank of China, the China Banking Regulatory Commission, renowned economists, and representatives from the Shanghai Banking Association engaged in in-depth discussions on the development of China's auto finance industry. Since 2001, the private car market has become the main driver of demand. On one hand, domestic manufacturers have continuously introduced new models, while on the other, rising household incomes and evolving consumer preferences have fueled the shift toward personal vehicle ownership. By 2001, private car consumption reached 47.1%, and by 2002, it had surpassed 56%. In 2003, the private car market continued to grow rapidly, supported by strong consumer demand. Domestic automakers saw an average profit margin of over 12.5%, significantly higher than the 2% to 4% profit margins of international automakers in 2002. In May 2002, many sedan manufacturers began lowering prices to attract major buyers. For example, the price of Sail and GOLO models dropped to 75,000 yuan on November 20th, sparking a small surge in consumer interest. However, analysts warn that such price cuts could trigger a chain reaction, leading to further price reductions across the market. A survey revealed that 48% of respondents plan to buy a car in the near future, with 18.7% looking to purchase immediately. About 35% of people under 35 years old account for nearly 60% of all car buyers. Economical family cars have dominated the market in recent years, with the most popular segment being vehicles priced between 50,000 and 100,000 yuan. The segment between 500,000 and 1 million yuan is growing the fastest. Domestic cars make up 70% of sales, and popular models are often in short supply, requiring reservations and additional fees. Dr. Mingjie Ming, a doctoral supervisor and national expert from Fudan University, noted that China has entered the prelude to full-scale automobile consumption. He predicts a period of high growth in the auto market that will last for a considerable time. Consumer finance, insurance, maintenance, spare parts, used car transactions, vehicle replacement, and automotive culture and entertainment—these downstream industries not only offer convenient services for car buyers but also represent a significant profit source for global automakers. However, the underdevelopment of the automotive financial services sector has limited personal car consumption in China. Only less than 10% of new car sales are made through consumer credit, far below the 60%-80% ratio seen in Europe and the U.S. Experts suggest that leveraging social resources such as banks, insurance companies, and sales networks can help establish a competitive and efficient automotive financial service system.

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