·Automotive finance company plans to infiltrate the upstream chain of industrial chain
From providing loans to individual consumers to lending to auto parts suppliers, the business scope of auto finance companies is brewing upstream to cover the entire industry chain.
With the continuous growth of the Chinese auto market, auto finance has also developed rapidly. According to statistics, the scale of China's auto finance assets has grown from less than 10 billion yuan a decade ago to more than 200 billion yuan. According to data released by Deloitte China Automotive Industry Management Consulting, by 2020, the scale of China's auto finance assets will exceed one trillion yuan.
Gu Feng, chief financial officer of SAIC Group, said recently that under the combined sales target of the automakers and the slowdown of the auto market, the profit pressure of dealers began to become prominent, and auto finance will serve as a spurt consumer and ease dealers. An important means of financial pressure. At present, the domestic auto finance company's business is mainly concentrated in retail consumer credit and dealer inventory financing. In the future, the demand for capital in the upstream and downstream industry chain will gradually increase, and the healthy development of the industry needs to be established on the premise of healthy development of the industrial chain. Therefore, the scope of business of future auto financial institutions needs to expand to the entire industry chain.
The combination of industry and finance is rising. In the context of the growth of the automobile market from the double-digit growth to the single-digit growth in the past, the sales expectations of car companies are still rising.
According to industry estimates, China's auto sales may exceed 30 million in 2018. Under the support of this sales forecast, almost all automakers are increasing their sales targets year by year and simultaneously expanding their networks.
Behind this, the dealer's survival pressure began to stand out. According to data from the China Automobile Dealers Association, only 30% of dealers made a profit in 2014, and five years ago, profitable dealers accounted for nearly 90%.
"The expansion of manufacturers, the growth of the automobile market is slowing down, the competition is more intense, and the combination of industry and finance will continue to rise." Gu Feng believes. This combination is mainly concentrated in two aspects of the business, providing retail consumer credit on the consumer side and inventory financing for the dealer on the enterprise side.
As far as the consumer side is concerned, with the post-80s generation becoming the main force in the automobile market, auto finance has developed into an important lever to shake up the sales side of the car.
“At present, in our store, auto finance loans account for more than 30% of the car purchases.†A Dongfeng Nissan distributor in East China told the Daily Economic News that the introduction of financial credits lowered the threshold for consumption, and most of the time, manufacturers still Low-interest or interest-free loans will be offered, which will have a greater effect on sales.
In addition, on the enterprise side, inventory financing has also eased the financial pressure of dealers to a certain extent. A joint venture dealer told reporters that in addition to traditional banks, financial institutions represented by auto finance companies are more popular. "Automotive finance companies have faster approvals, and manufacturers generally provide interest-free periods of about one month. Therefore, dealers generally choose auto financing companies for financing."
As a representative financial institution in the automotive industry, auto finance companies have expanded rapidly in the past two years. According to the China Automotive Finance Corporation Industry Development Report, as of the end of 2013, the total assets of China's auto finance companies have grown from 6 billion yuan in 2005 to 260 billion yuan. Except for foreign brands such as BMW, Ford and Volkswagen, Chery and BYD. Self-owned brands such as Jianghuai have also established their own financial companies.
Financial business expands to upstream enterprises. From the perspective of auto finance, our thinking has also changed in the past two years. The focus of attention has expanded from the traditional financial business to the entire industrial chain. Gu Feng pointed out that the entire industry chain also includes Financial support for upstream suppliers.
According to him, from the perspective of supplier capital flow, the lower the level of supplier pressure, the greater the pressure on suppliers. According to relevant data, in 2013, the ratio of accounts receivable of the first-level component suppliers to the total assets was twice that of the OEMs, and the turnover days of accounts receivable were one and a half months higher than that of the OEMs.
A person in charge of a parts company told the reporter of "Daily Economic News" that, for example, a car manufacturer's return cycle for a Tier 1 supplier is within 3 months after delivery, and the second-tier supplier and the next-level supplier The return cycle of the merchants will be longer. On the other hand, the increase in the orders of the OEMs will increase the supply of suppliers, which will force the suppliers to increase their production capacity. In the context that the payment has not been recovered, The supplier can only bear this part of the production cost first.
“Compared to the Tier 1 suppliers, most of the Tier 3 and Tier 3 suppliers are small and medium-sized enterprises. The voice in the industry chain is not strong, but the demand for funds is even stronger.†A financial company’s financial company related person introduction At present, most of these SMEs are lending to banks. However, if the company's payment cycle becomes longer and the asset-liability ratio increases, it will affect the approval rate of banks' loans.
“Compared with this, auto finance companies have faster approvals and a higher level of familiarity with the industry chain. If they can liberalize their financing channels for suppliers, they will be conducive to the safe development of the industrial chain.†According to the analysis of the company's personnel, in front of the bank, this part of the supplier is only a simple enterprise, and the bank will approve it step by step. However, in the view of auto finance companies, this part of the enterprise is also a part of the supply chain. Auto finance companies can The manufacturer's business order quantity evaluates the company's production capacity and launches the company's loan risk.
It is understood that in 2014, including SAIC Finance, a financial institution affiliated to SAIC, there are five pilot financial companies in the industry. However, for most auto finance companies, the scope of business is still limited to both inventory financing and consumer credit.
"Because of the division of labor with banking functions, auto finance companies have opportunities to tap." Gu Feng believes that with reference to the experience of developed countries, China's financial institutions may also be able to carry out special developments in the future, such as focusing on the automotive industry and expanding the scope of business. To the entire industry chain.
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