Beijing's efforts to tighten bank lending appear to have slowed new car sales on the mainland, prompting dealers to turn to their car financing arms and promote credit-card purchases.
The period immediately before Lunar New Year is traditionally a peak season for car sales, as mainlanders travel during the holidays, often returning to their family homes. But this year, because of the central government's efforts to rein in a splurge in lending, banks have limited car loans, though no official figures are available yet.
Banks granted 9.6 trillion yuan (HK$10.9 trillion) in new loans last year, nearly double the target of five trillion yuan.
At Bank of China's Guangzhou branch, an employee responsible for the car financing department said that an internal circular suggested lenders approve loans only on the first day of the month. If loan applicants miss the approval date, they must wait another month.
According to mainland newspaper Nanfang Daily, sales of some car brands in Zhongshan in Guangdong province, such as Toyota, Buick and Mazda are being affected by the slower approval of bank lendings.
'Banks in Guangzhou have tightened lending since early this year,' said Ma Huadong, a sales manager for Nissan cars.
