China Automobile Industry, Technology (NEV, Driverless, etc): News & Images

[TaiShang]

Talking about consumption power.

**

China passenger car sales on the rise
Xinhua, August 14, 2016

China's passenger car sales are on the rise. [File photo]


China's passenger car sales are on the rise, according to the China Passenger Car Association (CPCA).

Auto sales growth reached 23.3 percent in July year on year, the third consecutive month of double-digit growth and the highest in 17 months, the association said.

The CPCA predicted that passenger car growth in August and September will also exceed 20 percent.

Sales of passenger cars in China were tepid during the same period last year, with sales in May and June both growing at 3.8 percent. Sales in July 2015 fell by 2.5 percentage points.

This year's performance indicates strong consumer confidence and reduced taxes along with growing demand.

"People usually renew their cars every five to six years," said Feng Wei of China International Capital Corporation. "That means the 38 million cars bought in 2009 - 2011 will be renewed from this year."

CPCA's deputy secretary Yang Hua said August will see stronger performance as new models will hit the market.

Car inventories in July also decreased by 10.2 percentage points to 49.5 percent, according to the car inventory warning index released earlier this month by the China Automobile Deals Association.

 

[TaiShang]

BMW recalls over 156,000 cars for child seat defects in China
(Xinhua) August 16, 2016

BEIJING, Aug. 16 (Xinhua) -- German automaker BMW will recall 156,922 cars in China over defects in their child seats, China's top quality watchdog said Tuesday.

Starting Sept. 1, the recall will involve more than 134,000 X3 models produced between November 2010 and April 2016 and over 22,000 X4 models produced between March 2014 and April 2016, according to a statement from the General Administration of Quality Supervision, Inspection and Quarantine.

Welding problems were found in the lower anchors of the child seats on those models, which may prevent the seats from being secured properly and raise the possibility of passenger injuries during accidents, the administration said.

BMW China Automotive Trading Co., Ltd. will repair the anchors of the recalled cars for free, according to the statement.

 

[cirr]

Ford, China's Baidu invest $150M in self-driving 3D laser tech

A self-driving Ford Fusion test vehicle on the streets of Mcity, the University of Michigan's autonomous driving test facility. Atop the Ford Fusion are LiDAR ranging lasers from Velodyne.

Credit: Ford

Baidu plans onto test self-driving vehicles in the U.S. this year

By Lucas Mearian

Computerworld | Aug 16, 2016 10:35 AM PT

Ford and China's leading search engine company, Baidu,announced today that they've each invested $75 million in Velodyne LiDAR Inc., a Silicon Valley maker of laser technology that allows cars to autonomously navigate.

The money will be used to speed development and manufacturing of next-generation LiDAR or Light, Detection and Ranging technology, which uses lasers to create a 3D image of the area around a vehicle.

Three models of Velodyne's LiDAR laser ranging technology

Last year, Ford pledged to triple the number of Fusion Hybrid self-driving research cars from 10 to 30, which it now claims surpasses the fully autonomous vehicle fleet of all other automakers.

Ford already uses Velodyne's LiDAR on its test vehicles at its Arizona Proving Ground and the University of Michigan's Mcity, a 32-acre, full-scale simulated real-world urban environment where vehicles self-drive in every condition, including snow.

Ford also plans to double the members of its Silicon Valley research team to more than 300, according to Ford CEO Mark Fields. Ford chose Palo Alto, Calif. last year for its latest automotive research and development facility.

General Motors, BMW, Honda, Hyundai, Mercedes-Benz, Nissan-Renault and Toyota have all opened R&D centers in Silicon Valley.

In April, China's Baidu announced plans to expand its own autonomous driving lab in Sunnyvale, Calif. to more than 100 researchers who will focus on development of computer vision, robotics and machine learning.

Through a development partnership with BMW, Baidu is already testing self-driving vehicles in China; it plans to begin testing them in the U.S. this year.

One of Baidu's BMW self driving cars with LiDAR atop it.

"Our investment will accelerate our efforts in autonomous driving with what, in our view, are the best LiDAR sensors available today, and advance Velodyne's development of increasingly sophisticated LiDAR sensors," Jing Wang, general managers of Baidu's Autonomous Driving Unit, said in a statement.

Along with exterior cameras and radar, LiDAR is a key technology in enabling autonomous driving technology in that it can create a 3D picture of what surrounds a vehicle. LiDAR's laser ranging technology allows autonomous cars to drive just as well in the dark as they do in the daytime.

"From the very beginning of our autonomous vehicle program, we saw LiDAR as a key enabler due to its sensing capabilities and how it complements radar and cameras," Raj Nair, Ford's CTO, said in a statement.

Founded in 1983 as an audio tech company, Velodyne has over the past decade developed four generations LiDAR technology.

Velodyne's LiDAR technology includes proprietary software and algorithms that interpret data gathered from the laser-based sensors attached to vehicles. The result is a high-resolution 3D digital image that is used for mapping, localization, object identification and collision avoidance.

Velodyne's latest LIDAR sensor is capable of producing 300,000 to 2.2 million data points per second with a range up to 200 meters at centimeter-level accuracy, the company said.

Velodyne said that the latest round of investments from its partners will enable it to "rapidly expand the design and production of high performance, cost-effective automotive LiDAR sensors," which will help the technology go mainstream.

"We want the cost to be low enough to be used for all cars. We envision a safer world for the millions of automotive drivers across the globe," Marta Hall, Velodyne president of business development, said in a statement.

http://www.computerworld.com/articl...nvest-150m-in-self-driving-3d-laser-tech.html

 

[TaiShang]

Baidu expands investment in self-driving cars
By Shi Jing (People's Daily Online) August 17, 2016

According to a report in USA Today, Baidu and the Ford Motor Company have invested $150 million in Velodyne laser radars. A Baidu insider confirmed the news to the thepaper.cn.


The investment will allow the company to double its work force over the next 12-18 months, which will in turn help to foster innovations in semiconductor technology and other advanced research and development. At present, Velodyne has more than 200 employees. The investment will also help Velodyne to “accelerate the push for low-cost, mass produced laser radars,” eventually paving the way for Baidu to reduce the cost of its self-driving cars.

Early in July, Wang Jin, senior vice president of Baidu and general manager of the self-driving car division, told the thepaper.cn that the laser radars on Baidu’s self-driving car currently cost half a million yuan, while each car's server costs an additional 200,000 yuan. Wang added, ”Baidu hopes to guarantee the security of self-driving cars by using superior equipment. After that, we will consider ways to reduce the cost.”

Baidu produced its first-generation self-driving car in December 2015, which has since been updated to the third generation. Baidu has also set a development goal: self-driving cars to be used by companies within three years, and mass production of self-driving cars within five.

Velodyne, which was founded in 1983, is a Silicon Valley company whose laser radars are employed in the self-driving cars of both Baidu and Google. According to the thepaper.cn, Velodyne is planning to establish a China office in Beijing.


**

Tesla removes 'self-driving' saying after Beijing crash
China Daily, August 17, 2016

The Tesla Model S involved in an accident in Beijing, August 2, 2016. [China Daily]


Tesla Motors Inc removed the term "self-driving" from its China website after a driver in Beijing who crashed in "autopilot" mode complained that the carmaker overplayed the function's capability and misled buyers.

The Tesla driver crashed earlier this month while on a Beijing commuter highway after the car failed to avoid a vehicle parked on the left side but partially in the roadway, damaging both cars, but causing no injuries.

It was the first known such crash in China, although it follows a fatal accident in Florida earlier this year that put pressure on auto executives and regulators to tighten rules for automated driving.

A check of Tesla's Chinese website showed that the word "autopilot" had also been removed. But that term was subsequently reinstated on Monday.

"At Tesla we are continuously making improvements, including to translations," a Tesla spokeswoman said in an e-mailed statement when asked about the removal of the terms "autopilot" and "self-driving".

"We've been in the process of addressing any discrepancies across languages for many weeks. The timing had nothing to do with current events or articles."

References to autopilot and the term zidong jiashi, which most literally translates as self-driving but also means autopilot, were taken off the webpage for the Model S sedan by late Sunday, according to a comparison with an archived version of the page.

Both terms previously appeared several times on the site.

Instead, a phrase that translates as "self-assisted driving" is used.

Tesla China staff have additionally undergone training in response to the Aug 2 crash to re-emphasize that employees must always keep two hands on the wheel when demonstrating the autopilot function, according to a Tesla employee who was not authorized to speak to the media.

Tesla said it downloaded data from the Beijing car and confirmed it was in autopilot mode at the time of the crash, although the driver was not detected to have his hands on the wheel.

The spokeswoman for the US automaker issued a statement, saying that the system was not self-driving but merely assistive and that drivers were responsible for always maintaining control of the vehicle.

Other Tesla drivers interviewed said China sales staff took their hands off the wheel while demonstrating the function. Under Chinese laws, drivers are required to keep two hands on the wheel at all times.

The crash is another hiccup for Tesla in the Chinese auto market, the world's largest, after it initially struggled with distribution and charging issues.

Various Chinese government ministries did not respond to requests for comment on the Tesla crash and self-driving policies.

 

[TaiShang]

Baidu invests in US firm to gear up driverless tech
China Daily, August 18, 2016

Photo shows autononous driving car developed by Baidu on its test driving in Beijing on Nov.10, 2015. [Xinhua]


Baidu Inc has added fuel to its effort to put driverless cars into mass production within five years with its multimillion dollar investment on Tuesday in a major US producer of lidar sensors, a key technology that helps the cars "see" their surrounding environment by using light to measure distance.

California-based Velodyne LiDAR Inc, which provides sensor technology that can help driverless cars, announced that it had completed a combined $150 million investment from Ford Motor Co and Baidu.

Beijing-based Baidu did not disclose the size of its investment. But Ford, which announced on Tuesday its plan to produce fully autonomous vehicles for ride-hailing services by 2021, said it invested $75 million in the lidar sensor company.

Velodyne, which was founded in 1983, said in a statement that the investment will help the company expand production and make sensors more affordable for the mass deployment of fully autonomous vehicles.

"We want the cost to be low enough to be used for all cars. We envision a safer world for the millions of automotive drivers across the globe," said Marta Hall, Velodyne's president of business development.

Wang Jin, senior vice-president and general manager of autonomous driving unit of Baidu, said the investment will accelerate Baidu's efforts in autonomous driving.

"Baidu is developing autonomous vehicles in order to increase passenger safety and reduce traffic congestion and pollution in China," he said in the statement.

The investment to gear up expansion in autonomous driving comes at a time when Baidu's traditional search business has been weakened by the tighter controls over internet advertisements, and it is looking at driverless vehicles to become a new engine to spur the company's growth.

An industry observer said that the investment is expected to help Baidu achieve its ambitious goal of getting driverless cars on the road within three years, and putting these cars into mass production within five years.

Zeng Zhiling, managing director of LMC Automotive Consulting Co Ltd, said that the investment is the right way forward for Baidu to expand its business.

 

[TaiShang]

BYD's EVs set to green Singapore
China Daily, August 22, 2016



BYD e6 fleet in Singapore [Photo/China.org.cn]

China's major electric vehicle or EV producer BYD Co Ltd is targeting Singapore to sell buses and taxis. It is relying on its time-tested overseas expansion strategy for the foray.

Promotion of electric vehicles for local public transport systems, and then localization involving establishment of research and development centers or assembly lines－they constitute BYD's strategy to enter a foreign market.

The carmaker announced on Aug 8 that it would conduct trials of its pure electric bus K9 in Singapore from this month. The six-month trials will see the K9 being introduced into Go Ahead SG's bus services operating from Loyang Depot.

The trials will look into the challenges of whether an electric bus can meet the full-day operational demands of a conventional public bus, without compromising on reliability and serviceability, in a local environment.

It is also part of Singapore's EV Phase 2 Test, a trial program of the Land Transport Authority and the Economic Development Board to research and develop EVs.

The program is aimed at exploring fleet-based operations such as electric car-sharing, electric buses and electric taxi fleets, and assessing whether they are viable for Singapore's land transport network.

"BYD is committed to providing green and sustainable comprehensive ground transportation including e-buses, e-taxis, e-vans, as well as e-trucks," said Liu Xueliang, BYD's general manager for the Asia-Pacific region.

Currently, Singapore uses buses with internal combustion engines fueled by diesel. There are about 18,000 public and private buses in service in Singapore, accounting for about 2 percent of the total vehicles on the country's road.

Last month, BYD also signed a purchasing contract of 100 units of e6 pure electric crossover sedans with a local taxi firm HDT Singapore Taxi Pte Ltd, marking BYD's first fully electric taxi operation in Southeast Asia. HDT will begin its e6 taxi service in the first week of September, with all 100 units being progressively introduced until the first quarter of 2017, the e-carmaker said.

HDT has been operating a private-hire service with an existing fleet of 30 BYD e6 units since 2014, which will continue to provide on-call and leasing services.

HDT's e-taxi trial is also part of Singapore's EV Phase 2 Test. The HDT e-taxi service will operate for eight years.

"With its strong research capabilities, great pool of talent and a growing electro-mobility ecosystem, Singapore is an ideal location to deploy our e-taxi fleet to conduct research and development with reputable partners," said Wang Chuanfu, chairman of BYD Group.

Wang said he hopes to co-create new and innovative solutions that can be commercialized first in Singapore and later in other countries in the region.

Seeing Singapore's leading position in finance, technology, culture, and its location in Southeast Asia, as well as strong commitment to environmental preservation, BYD considers the country a key market in the region.

The e-carmaker said it plans to establish its Southeast Asian regional headquarters and research and development center in Singapore, but did not indicate a time frame.

"It depends on the market, so we can't decide when to build them," said a public relations executive of BYD, adding the company now is discussing the idea with the Singaporean government.

Singapore issues a limited number of vehicle licenses every year and applicants could get one in a bi-weekly auction. The license price varies according to vehicle emissions and type.

"In Singapore, buying a vehicle is like buying a house, it is too expensive", said Amanda Hao, 33, a Singaporean resident, who is curious why the government seems not very active on encouraging new energy vehicles or NEVs.

According to her, a license for vehicles with engines under 1600cc costs about US$37,600, while a license for vehicles with engines above 1600cc would cost about US$42,100. But licenses for vans and buses are cheaper at US$33,800.

Founded in 1995 as a battery maker, BYD is now a new energy solution provider with businesses covering four industries: IT, cars, new-energy vehicles and light rail systems.

Listed on both the Hong Kong bourse and the Shenzhen Stock Exchange, BYD said it aims to sell 150,000 NEVs worldwide this year. Last year, it sold 70,000 NEVs across the world, up more than 200 percent year-on-year.

The company has 24 production bases in China, one in the United States and one in Brazil. Its NEVs have been sold in 48 countries and regions.

 

[TaiShang]

Guangzhou Auto starts building US$240m Xinjiang plant
Xinhua, August 24, 2016

Guangzhou Automobile Group Co., Ltd on Wednesday started construction of its assembly plant in northwest China's Xinjiang Uygur Autonomous Region.

With an investment of 1.6 billion yuan (240 million U.S. dollars), the plant has a designed annual production capacity of 100,000 cars and will create 1,500 jobs.

Located in the Urumqi economic and technological development zone, the plant is scheduled to begin production of gasoline and electric cars as early as the end of 2017, said Zeng Qinghong, general manager of Guangzhou Automobile Group.

Zeng said the plant will supply western Chinese regions and central Asian countries.

Zhou Yawei, a member of the Standing Committee of the Guangzhou Municipal Committee of the Communist Party of China, said the investment answers the central government's call to help Xinjiang's development and push forward the Belt and Road Initiative.

 

[TaiShang]

Intelligent driving startup Jidou raises 53 million yuan
Last Updated: 2016-08-25 15:10 | chinadaily.com.cn

Shanghai-based technology startup Jidouauto.com raised 53 million yuan ($7.97 million) from investors, and is expected to seek a more than 10 percent share in the automotive aftermarket within 2 years, according to the company's founder Wang Yifei.

The company announced on Wednesday that it has completed series A financing, led by a leading cleantech venture investment firm Tsing Capital, and a local internet angel capital fund called Zhizhuo Group.

"We aim at creating better intelligent navigation experiences for consumers, so that they can receive convenient services in the Internet of Vehicles, instead of using navigation on their cellphones." Said Wang Yifei.

The Internet of Vehicles is the convergence of the mobile Internet and the Internet of Things, containing communications, intelligence and learning capabilities to anticipate users' intentions.

Established in 2014, the Internet of Vehicles company provides online car services, such as vehicle navigations, aiming to help consumers who own ordinary cars enjoy the same experiences as Tesla owners.

As of today, the company is able to provide services for 2,000 cities in China, containing nearly 5,000 offline service points. Among them, 300 can offer home installation services.

Wang said that the new cash would be invested on the research and development of the products and to enhance team building.

The company also introduced new vehicle navigation on Wednesday, priced from 1,999 yuan, to target consumers with limited budgets who still want intelligent driving.

 

[TaiShang]

BYD electric cars rev up earnings by 384% in H1
China Daily, August 30, 2016

BYD hybrid SUV Tang is seen during the 2015 Shenzhen-Hong Kong-Macao International Auto Show in Shenzhen, South China's Guangdong province, June 6, 2015. [Photo/Xinhua]

BYD Co Ltd, a major Chinese new energy vehicle manufacturer, posted a first-half profit increase of 384 percent to 2.26 billion yuan (US$342 million) compared to the same period last year, mainly due to the increase in its new energy vehicle business.


Boosted by the rocketing profit, its Hong Kong shares on Monday rose by 3.9 percent at one point to HK$53 (US$6.8), and closed at HK$52.25.

Its revenue also grew by 43.74 percent year-on-year to 43.75 billion yuan in the first six months of 2016, 35 percent of which was from its new energy automobile business, according to its interim results published on Sunday.

The sales income of its new energy vehicle business developed rapidly by about 1.61 times year-on-year to 15.31 billion yuan.

The sales volume of its new energy automobiles surged by about 130 percent to approximately 49,000 units during the first six month, while its target for annual sales in 2016 is 120,000 units, Wang Chuanfu, chairman of BYD, said at a briefing on Monday.

He said the next half year is usually its busy season and he is confident that the company will accomplish the target, especially after the launch of more new vehicle models.

According to statistics from the China Association of Automobile Manufacturers, BYD's share of the new energy automobile market was approximately 27 percent in the first half of 2016 and the company has dominated the plug-in hybrid vehicle market with a 65 percent share.

New energy automobiles have become the highlight of China's automobile market. In the first half of 2016, its total sales surged 126.9 percent year-on-year to 170,000 units, according to CAAM statistics.

 

[TaiShang]

A new approach to auto manufacturing I
China.org.cn, September 5, 2016

Editor's note: The New Energy Automotive Industrial Park, located at a development zone in Zunyi, Guizhou Province, has enjoyed rapid development since it was put into operation in March 2015. Covering an area of 3,960 mu (264 hectares), the park includes five functional areas: spare parts manufacturing, whole vehicle manufacturing, testing area, accessory industrial area and living facility area. Currently, 46 enterprises are stationed in the park, and about 80 percent of automobile parts have been manufactured locally to form a complete industrial chain. It is expected that output value will total 5 billion yuan (US$748.5 million) in 2016.

​

New energy automobiles are parked at the exhibition hall in the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

New energy automotive components are a treat for the eyes at the exhibition hall in the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

Workers are busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

Workers are busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

Workers are busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

Workers are busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

A worker is busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

A worker is busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

 

[TaiShang]

A new approach to auto manufacturing II
China.org.cn, September 5, 2016

​

A worker is busy at the production line at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

A worker gives a brief introduction at the exhibition hall in the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

A mobile energy-storage charging system at the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

A worker is busy at the production line at the new energy research institute of the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

A worker is busy at the production line at the new energy research institute of the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

​

People are fascinated by automobile parts at the exhibition hall in the New Energy Automotive Industrial Park in Zunyi, Guizhou Province, on Aug. 30. [Photo by Luo Xinghan/China.com.cn]

 

[ahojunk]

| Sat Sep 3, 2016 9:10pm EDT
Chinese consumers take credit for boom in car loans

A Baojun 560 car is seen at a dealership in Linyi, Shandong province, China, July 7, 2016.

By Jake Spring | BEIJING

Chinese households, traditional savers with an aversion to debt, are rapidly warming to the idea of borrowing to buy a car, as automakers push financing deals to boost sales and margins in an increasingly competitive market.

Nearly 30 percent of Chinese car buyers bought on credit last year, up from 18 percent in 2013, according to analysts from Sanford C. Bernstein and Deloitte, helping a rebound in the car market after a sticky 2015.

That is welcome news to China's government, which wants consumers to borrow and spend more to shift its slowing economy away from heavy industry and investment-led growth.

Beijing resident Wang Danian said he planned to buy his first car on credit, saying it was the smart move.

"I can use my cash to do other things," the 28-year-old said while looking at an FAW [SASACJ.UL] Besturn X80 sport utility vehicle. "If I use all my savings at once to buy a car, and then something happens, I can't manage the risk."

Six consumers interviewed by Reuters said they would all consider loans, lured by low-fee and interest-free deals, with half saying they'd prefer to buy on credit and save cash for other items.

"I'd estimate after the manufacturer came out with the low-interest deal that about 30 percent of potential cash buyers switched to buying on credit," said a salesman at a Volkswagen (VOWG_p.DE) dealership in eastern China's Jiangsu province who gave his name as Mr. Zhao.

That is still a far cry from the more than 80 percent of cars bought on loans in the United States, but Deloitte predicts China will reach 50 percent by 2020.

Global automakers have struggled to encourage this trend for some time; Volkswagen established its finance subsidiary in 2004, but was held back by strict regulations on underwriting loans and sources of funding.

As the government gradually relaxed those restrictions over the last seven or eight years, financed purchases have grown, with Daimler's (DAIGn.DE) Mercedes saying more than 30 percent of its cars in China are now bought on credit, and it reported 31 percent year-on-year growth in net lending as at the end of July.

China's auto market struggled last year thanks to the slowest economic growth in 25 years and a stock market rout, but rebounded in October when the government cut sales tax on smaller cars. By July, vehicle sales were rising at their fastest monthly rate in three and a half years.

"While the government's tax reduction was the most obvious explanation for the rebound in Chinese car sales at the end of 2015, soaring auto financing penetration represented another, lesser noticed, driver of the boom," Bernstein said in April.

DEFAULT RISKS

More Chinese automakers jumped into the loans market last year, with Guangzhou Automobile Group (601238.SS)(2238.HK) and Geely (0175.HK) setting up financing firms.

Several Chinese carmakers also reported a significant impact from financing activity on their accounts for the first half of 2016.

SAIC Motor Corp (600104.SS), China's largest automaker, said its net operating cash flow dropped by 16.6 billion yuan ($2.5 billion) from the same period a year ago, as money was diverted to its financing unit for consumer loans.

Dongfeng Motor Group (0489.HK) similarly reported a 3.6 billion yuan year-on-year fall in net cash flow due to an increase in loans and receivables of its financial business.

Great Wall Motor (601633.SS) recorded a 140 percent increase in interest income, mainly because of its finance subsidiary.

BYD (002594.SZ)(1211.HK), backed by Warren Buffett's Berkshire Hathaway (BRKa.N), said with 13.6 percent of its sales done on credit, financing was already making considerable contribution to its profits.

Controlling the risk of default on these loans can be difficult in China, where there isn't a reliable credit rating system for individuals comparable to the U.S., said Yale Zhang, managing director of consultancy Automotive Foresight in Shanghai.

"You cannot spend one month to investigate one person and then in the end you only land 100,000 yuan," Zhang said.

That got the sector into trouble when China previously tried to pump up car sales through loans after the Asian financial crisis of the late 1990s. A lack of risk control resulted in widespread defaults and a government clampdown for several years in the mid-2000s, he said.

"It arguably remains open to question whether Chinese auto (non-performing loans) will remain similarly low, should macro conditions deteriorate," Bernstein said in April, observing low delinquency rates thus far.

Chinese e-commerce giant Alibaba (BABA.N), which last year inked a collaboration deal with China Yongda Automobiles Services (3669.HK), says it can address this risk thanks to 'big data' it has on its customers, including their credit records.

The company's auto web portal offers "instant automobile financing", approving loans in as little as 20 seconds, a spokeswoman said.


(Reporting by Jake Spring and Beijing newsroom; Editing by Will Waterman)

 

[Dungeness]

Nearly 30 percent of Chinese car buyers bought on credit last year, up from 18 percent in 2013, according to analysts from Sanford C. Bernstein and Deloitte, helping a rebound in the car market after a sticky 2015.

In comparison, 86.6% new car buyers and 55.3% used cars buyers are on car loans in the US. Average loan term for a new car is 67 months, and 62 months for a used car.

 

[TaiShang]

"I can use my cash to do other things," the 28-year-old said while looking at an FAW [SASACJ.UL] Besturn X80 sport utility vehicle. "If I use all my savings at once to buy a car, and then something happens, I can't manage the risk."

Very good. Buy local.

In comparison, 86.6% new car buyers and 55.3% used cars buyers are on car loans in the US. Average loan term for a new car is 67 months, and 62 months for a used car.

I heard in the US college students use their student loans to buy a car.

Very strong car culture there.

 

[Dungeness]

Very good. Buy local.



I heard in the US college students use their student loans to buy a car.

Very strong car culture there.

It is not like they have any option. The public transportation system sucks big time here.