BEIJING – Volkswagen Finance (China) Co., Ltd. achieved 230,000 in retail loan volume in 2013, up more than 50 percent from 2012 and eight times the figure five years ago, the company said in a statement on March 26.
That makes China the second largest market for Volkswagen Financial Services AG (VWFS) worldwide.
Since its founding in Beijing as the first foreign auto finance company in China in 2004, Volkswagen Finance China has established close cooperative relationships with Shanghai-Volkswagen, FAW-Volkswagen and Volkswagen Group Import (China), providing a range of financial services for Volkswagen Group brands including Volkswagen, Audi, Škoda, Porsche, Scania, SEAT, Bentley, Lamborghini and MAN. It currently partners with over 1,900 dealers in 270 cities across the country.
“In the future we will introduce more innovative financial products, on one hand to define and generate target groups and develop more suitable and tailored products; on the other hand to provide more comprehensive packages to serve dealership groups. We aim to enable discerning customers to own the car of their dreams, and give impetus to the auto industry with innovation,” said Joern A. Kurzrock, CEO and general manager of Volkswagen Finance China, which is celebrating its 10th anniversary this year.
According to Volkswagen Finance China, the penetration of auto financing in China has quadrupled from 5 percent in 2004 to about 20 percent in 2013.
VWFS achieved operating results of €1.6 billion last year, up 14.6 percent while the portfolio was 10.7 million contracts, an increase of 11.3 percent, of which new contracts came to 4.3 million, an increase of 13.4 percent.