Toyota Motor Finance China (TMFCN) aims to grow originations to 22% of Toyota and Lexus vehicles sold in China, Auto Finance News has learned.
That compares with a 21% penetration rate — or 273,000 vehicles — in 2017. Though China has been the largest new-car sales market since 2009, its finance rate is only about 20% — versus about 80% in the U.S.
In China, Lexus vehicles are financed through Toyota Motor (China) Investment Co., which is Toyota Motor Corp.’s wholly owned finance subsidiary. Toyota-branded vehicles are financed by joint ventures with Chinese auto manufacturers FAW Group and GAC Group.
TMFCN forecasts its penetration rate based on sales expectations devised independently by its Chinese partners, Wang Xin, vice president of TMFCN, told AFN.
Sales have been growing in China, albeit at a slowing pace. Last year was the slowest growth year in at least two decades for new-car sales in China, increasing 3% year over year to 28.9 million vehicles sold.
The China Association of Automobile Manufacturers suggested 2018 will grow at a similar pace to last year, with sales growing 3.5%.
Still, Toyota Motor Corp. aims to sell 1.4 million vehicles in China in 2018 — 9% more than it sold in 2017.
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