China Eases Car Loan Regulations to Boost Consumer Spending

Yan Xiangju
1 min read

China Eases Car Loan Rules to Boost Consumer Spending

China has relaxed its car loan regulations, allowing easier access to loans for purchasing personal cars in an effort to stimulate its automotive industry and bolster declining consumer confidence.

Key Takeaways:

  • China has adjusted loan ratios for gasoline and electric passenger vehicles, enabling lending institutions to independently determine the ratios.
  • Previously, a fixed ratio of 85% for electric vehicles and hybrids, and 80% for conventional cars was in place.


This move is aimed at revitalizing consumer sentiment and rejuvenating the automotive sector, which has been experiencing a slowdown. The relaxation of car loan rules is expected to encourage higher vehicle purchases and fuel consumer spending.

Do You Know?

  • Loan ratios for electric and hybrid vehicles along with conventional cars have been independently determined by lending institutions in China.
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