Santander Makes a Pact With JAC to Enter the Chinese Car Finance Market

Jan 1 2012

Customers seeking car finance might be interested in a new development between Santander Consumer Finance and Anhui Jianghuai Automobile Company (JAC), who are together launching a major new auto loan venture in China.

A cool €58 million will be put up by both companies in initial capital for the scheme, and each will hold a 50% stake in the new firm.  JAC, one of the largest car manufacturers in China, will nominate the chairman, while Santander will select the general manager.

As a canny car loan trader, Santander will not be blind to the fact that its Consumer Finance division will now have access to 1,000-plus dealerships across China.  In the 14 countries in which it currently operates, Santander helps facilitate the purchase of a handsome 1.3 million vehicles every year.  In the UK alone, Santander supplies car credit to Mazda, Volvo, Kia and Hyundai.  The firm has also operated an auto loan portfolio for GE Money since 2009.  The Chinese market will represent a major feather in the company’s cap.

 A Santander spokesman described China as a “huge market,” adding:

“Through its consumer finance arm, Santander has huge expertise in the European and US markets.  China is a market of opportunity if you can go into it market with someone of experience such as JAC.”

It is not yet clear how the venture might impact on the UK market.  If the model proves successful – major international corporations putting together a local company – UK car credit could ultimately become a whole lot easier.

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