Volkswagen Financial Services increased its penetration of automotive loan and lease products across China and India but saw Japan taper off, according to the captive’s half-year earnings report released Wednesday.
VW originated 413,000 new contracts in the Asia-Pacific region — an increase of 14.6% year over year, according to the report. The OEM’s financial services unit now holds 1.5 million consumer loan contracts on its balance sheet, up 4.5% since the period ending in December.
“In China, the proportion of loan-financed purchases rose year over year,” the company wrote in the report without disclosing how much it increased.
Still, licensing restrictions on vehicles in major cities across China are hampering sales.
“Despite increasing restrictions on registrations in metropolitan areas, there is considerable potential to acquire new customers for automotive-related financial services, particularly in the interior of the country,” the company noted in the report.
In the U.S., VW Credit added 451,000 contract originations — a 9.1% increase year over year. The total number of consumer financing and leasing contracts totaled 1.8 million.
Overall, the OEM’s global financial services unit grew to $244.8 billion outstanding as operating profits grew 5.7% to $1.4 billion. Noncurrent loans globally are up 4.4% compared with the previous period.Like This Post