China Eases Car Loan Rules in New Bid to Boost Consumption
- Banks can set own loan ratio for personal vehicle purchases
- Changes comes as EV growth slows, economic headwinds build
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China made it easier to take out loans for buying personal cars as the country looks to its sprawling automotive sector to boost weakening consumer sentiment.
The central bank and financial regulator said loan ratios for gasoline and electric passenger vehicles, including hybrids, can now be independently determined by lending institutions. Previously, the ratio was a blanket 85% for EVs and hybrids, and 80% for conventional cars.