In the realm of credit, commercial vehicles used for business purposes are far more commonly utilized than passenger cars. Providers, distributors, and financial institutions must make initial efforts to ensure that future credit development becomes more successful. As the fifth day of the Lunar New Year approached, the festive atmosphere filled the springtime air. Under the backdrop of red lanterns and fireworks, China National Heavy Duty Truck (CNHTC) held its first auto consumption credit signing ceremony in 2008. A total of 157 Sinotruck dealerships and CNHTC product conversion companies across the country were eligible to start this business, working with banks to offer consumer credit options to end-users. This move not only boosted the enthusiasm of people celebrating the New Year but also brought hope to potential customers who had previously struggled with cash shortages. Ni Guixiang, Minister of the China National Heavy Duty Truck Propaganda Department, told Autobot: “The implementation of consumer credit has helped more car buyers realize their dream of purchasing vehicles ahead of time, which will greatly promote the sales of China National Heavy Duty Truck Group.” Win-win cooperation is essential for the success of such initiatives. Unlike passenger vehicles, commercial vehicle loans have unique characteristics due to their structure and target users. As a result, the market for commercial vehicle credit appears less competitive compared to the saturated passenger vehicle loan sector. Commercial vehicles are considered means of production rather than personal assets, and many users purchase them for profit. For these users, loans are often the most cost-effective option. Given the high price of heavy-duty trucks—often reaching tens or even hundreds of thousands of yuan—consumer credit helps ease the burden of purchase. Without such options, many potential buyers may be unable to afford upfront payments, leading to lost opportunities. In this sense, consumer credit acts as a catalyst for commercial vehicle market growth. However, commercial vehicle credit also carries significant risks. The industry's inherent characteristics mean that credit risk is a major obstacle to development. Both external and internal risks, along with individual lender risks, contribute to the challenges. Additionally, the social environment and specific factors can greatly affect insurance risk. Unlike family cars, commercial vehicle users face greater difficulty in continuing monthly payments after accidents or business disruptions. At the time, the average loss ratio of auto loan insurance in some regions reached as high as 136%, with some companies hitting 400%. Despite these challenges, CNHTC managed to achieve over 70% of its sales through credit. Banks, too, have become more cautious in assessing commercial vehicle credit. The Agricultural Bank of China reported non-performing rates of 0.74% for car loans, 1.66% for freight vehicles, and higher for other types. To mitigate risks, banks have tightened monetary policies, increased down payment requirements, and even suspended certain credit activities. A win-win model is key to fostering collaboration between manufacturers, financial institutions, and insurers. CNHTC, an insurance company, and a commercial bank have jointly developed a new consumer credit model, emphasizing shared participation, clear responsibilities, and limited risks. This approach has motivated distributors to implement credit programs more effectively. According to Vice President Wei Zhihai of CNHTC, this joint effort represents a bold step toward a new credit model, promoting market expansion and mutual benefits. Ni Guixiang added that CNHTC’s involvement in commercial vehicle credit is a breakthrough, driven by its ability to minimize bad debt risks and secure sufficient funding post-listing. Despite the challenges, the future of commercial vehicle credit holds promise. Xu Xiaohua, General Manager of China CITIC Bank Auto Finance Center, estimated that if 30% of car buyers opt for financing, domestic auto credit demand could reach 300 billion yuan by 2010. With strong brand loyalty and demonstration effects, commercial vehicle users tend to remain loyal to their brands and financial partners, making the credit process smoother. The rise of professional auto finance companies has introduced new players into the market. While global automakers like GM, Volkswagen, and Toyota have entered the Chinese financial sector, Volvo Car Finance (China) stands out as one of the first specialized firms focusing on commercial vehicles. Domestic manufacturers are increasingly recognizing the importance of consumer credit in boosting sales. Dongfeng Motor operates truck credit through affiliated financial companies, while CNHTC collaborates with banks to offer credit solutions. These partnerships involve dealers providing guarantees, ensuring smoother operations. In today’s evolving credit landscape, developing a safe and innovative commercial vehicle credit model remains a priority. Balancing the interests of banks, companies, and insurers while leveraging their strengths is crucial for sustainable growth. By reducing costs, improving service quality, and enhancing customer experience, the industry can unlock new opportunities. “Maximizing risk control and promoting development gradually will be an effective way to advance commercial vehicle credit and marketing,” said industry experts.

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