Daimler, which owns the Mercedes-Benz brand, expects penetration rate for its auto financial products in China to increase to 40 percent when it rolls out more services and products for dealers and retail customers.
The penetration rate, or the number of financed and leased cars as a proportion of the total number of newly-purchased Daimler vehicles, is around 15 percent in China, far below that in the Europe and especially the United State, said Klaus Entenmann, chairman of Daimler Financial Services.
"The global annual demand for automobiles is estimated to grow by more than 40 million units by 2020, and we firmly believe that a significant proportion of the new customers will demand financial services for their cars," Entenmann said yesterday.
"Much of that growth will take place in Asia, with China at its heart."
Global automakers have set up financial arms to offer a broad range of auto finance and insurance solutions for dealers and retail customers.