At the 2025 Automotive Finance Industry Summit held in Tianjin on November 27, Shen Jinjun, Honorary President of the China Automobile Dealers Association (CADA), analyzed the current status and challenges of the automotive market and outlined the future development direction of the automotive finance industry. The summit indicated that the industry is at a critical juncture of transitioning from a "capital provider" to an "ecosystem co-builder."
The industry is undergoing fundamental transformations:
Market level: Shifting from traditional credit/price competition to structural optimization and product innovation; moving from "high-income, high-rebate" involution to "low-income, low-rebate" rational development.
Product level: Expanding beyond single auto loans to innovative models such as battery leasing, charging rights, sale-and-leaseback, and lease-to-own.
Challenges: Intensified competition, compressed profit margins, complex risk management, and growing consumer demands for convenience, transparency, and personalization in financial services.
Policy orientation: Regulators are strengthening risk controls and improving financial support systems to better serve people's livelihood and industrial development.
The summit emphasized the need for the automotive finance industry to upgrade its role from a mere "capital provider" to an "ecosystem co-builder." Future development should focus on openness, collaboration, data sharing, and risk pooling to optimize user experience and build a healthy, sustainable automotive finance ecosystem.
At this critical transformation stage, the summit provided clear guidance for the industry. Analysts believe that seizing the three core priorities and proactively embracing changes will be key to gaining a competitive edge in the fierce market.