The passenger car financing leasing market has a unique landscape, with a compound annual growth rate of over 30% and a high gross profit margin in the coming years, attracting heavy capital from various sources. After the influx of numerous participants, who can run quickly and who can fall less becomes the key to winning the future. Industry insiders say that advantages depend on three factors: circulation channels, low capital costs, and risk control capabilities.
Compared with the traditional automobile circulation business where profits have decreased or even suffered losses, passenger car financing leasing has a unique advantage. Multiple institutions predict that the scale of China's passenger car financing leasing will expand from tens of billions of yuan to hundreds of billions of yuan in 2020, with an annual compound growth rate of over 30%. Therefore, the industry has attracted heavy investment from various sources of capital in recent years. In the era of the Internet, passenger car financing leasing can effectively connect vehicle sales, services, and second-hand car business. Once the connection is established, China's automotive circulation industry will enter the 2.0 era and profit margins will be opened up. "He Changjin, General Manager of Huitong Cheng Leasing, believes so.
Giant Water Testing
Internet giants are eyeing the cake of car financing leasing. In early August, Yiche announced the formation of an investment consortium with strategic investors such as Tencent, Baidu, and JD.com, investing a total of 550 million US dollars in cash (approximately 3.648 billion RMB) in Yiche Finance Co., Ltd. (referred to as "Yiche Capital"), a subsidiary of Yiche that is engaged in automotive financing. This is Baidu's first bet on Yixin Capital, but it is the second time Tencent and JD.com have made a bet. As early as early as 2015, Yixin Capital obtained approximately $400 million (approximately RMB 2.63 billion) in A-round financing from Tencent, JD.com, and Yiche.
In March of this year, Didi Chuxing established its wholly-owned subsidiary "Zhongfu Financial Leasing (Shanghai) Co., Ltd." in the Shanghai Free Trade Zone through its Hong Kong subsidiary "Kuaifu Holdings Co., Ltd.", with a registered capital of 1 billion yuan. At this point, Didi Travel has set foot in car financing leasing. Recently, Guoji Automobile (600335, Stock Bar) announced that it will invest 200 million yuan in the internet travel platform "Didi Travel". Guoji Automobile stated that it will conduct comprehensive cooperation with Didi Travel in various fields such as car leasing, financing leasing, and the automotive aftermarket in the future.
At the end of 2014, Haier Financial Leasing Company and EasyCar jointly established the "Haier EasyCar Financial Services" company, investing 8 billion yuan to provide passenger car financial leasing services to small and medium-sized car leasing enterprises that have settled on its platform.
The leading companies in the automotive circulation industry that are most familiar with the wind direction have long been in the passenger car financing and leasing market. This year, many leading companies in the automotive circulation industry have chosen to invest in passenger car financing leasing business. Yongda Motors, which had planned to return to A-shares, announced that it would invest 70% (3.5 billion yuan) of its planned fundraising of 5 billion yuan in passenger car financing leasing business. Guanghui Automobile (600297, stock bar) plans to issue 8 billion yuan in a non-public offering, of which no more than 5.6 billion yuan will be invested in passenger car financing leasing business.