Great Wall Motor (GWM) announced recently that its application to establish an auto financing company has been approved by the China Banking Regulatory Commission (CBRC) and the preparatory work will be completed within six months, according to a report in Beijing Times.
GWM is reportedly to join hands with Tianjin Binhai Rural Commercial Bank to set up an auto financing firm to be called Tianjin Great Wall Binyin Auto Finance Co. with headquarters in Tianjin Binhai New Economic and Technological Development Zone. The business scope of the company includes retail financing of the Great Wall brand customers and wholesale financing for the Great Wall dealers as well as other related financing services stipulated in the Administrative Rules Governing the Auto Financial Companies.
CBRC has approved 16 auto financing companies in China since 2004. Most of these companies are foreign-invested such as Toyota, Volkswagen and GM.
Among Chinese domestic carmakers at present, only FAW, Chery, Geely and Brilliance Auto offer financing related services or have financing business under preparation.
GWM’s business income and net profit in the first half of the year totaled ¥26.42 billion ($4.31 billion) and ¥4.09 billion respectively, up 44.4 percent and 73.7 percent year-on-year, reported China Securities Journal, citing GWM’s performance report of H1 2013.
GWM sold 370,301 vehicles including 186,113 SUVs in the first six months, up 41.33 and 77.96 percent on a yearly basis. The Baoding-based automaker plans to continuously increase investment in developing energy-saving and environmental-friendly cars. The company will also introduce more Haval brand SUV models and Great Wall brand vehicles in the next few years.