Chinese automotive finance: development, policies, and regulations

Abstract The rapid development of Chinese automotives, particularly in the new energy vehicle (NEV) sector, has garnered global attention. This study focuses on a niche area that has yet to be thoroughly examined: automotive finance This study adopts a qualitative policy and regulatory analysis based on national-level policy documents and industry data. First, it explores the evolution of automotive finance in China within the context of the broader automotive market. Second, it reviews key policy initiatives from Chinese authorities related to the automotive industry, automotive finance companies, and automotive consumption. Third, it analyzes recent regulations on automotive finance companies, concluding that these measures are designed to mitigate systemic risks within China’s financial system while supporting the NEV sector. Automotive finance in China functions not only as a consumer credit tool but as a policy-oriented financial mechanism that links industrial upgrading, consumption expansion, and financial risk governance.