China Eases Auto Loan Rules to Boost Car Sales
China relaxed a ceiling on automobile loans in an effort to boost car purchases as Beijing seeks to stimulate consumption.
The country's financial institutions now have full autonomy to decide the down payment levied on car loans for individuals, the People's Bank of China said in a statement on Wednesday. Loan ratios for commercial vehicles and second-hand cars remain unchanged.
China previously allowed lenders to offer auto loans of up to 80% of prices for internal-combustion-engine vehicles and 85% for new-energy vehicles, which include electric cars and plug-in hybrids.
Car sales in China, the world's biggest auto market, have been volatile in the past year. In February, passenger car sales fell 21% from a year earlier, according to the China Passenger Car Association. The industry group forecast sales growth of 3.7% for March, driven by government incentives and price cuts by automakers.
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(END) Dow Jones Newswires
April 03, 2024 05:44 ET (09:44 GMT)
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