The new energy vehicle market heats up, financial tools "lend" to drive consumption

◎ Reporter Xu Xiaoxiao

With crude oil prices continuing to run at high levels in recent times, more and more households are shifting their car-buying goals toward new energy vehicles with lower operating costs. The reporter recently visited multiple new energy vehicle showrooms in Shenzhen and found that major new energy car brand stores have strong foot traffic. Test-drive appointments generally require waiting in line for 1 to 2 days, and the delivery timeline for some popular models has already been scheduled for after 1 month.

The latest market forecast data from the China Association of Automobile Manufacturers shows that in April, the total market size of the narrow passenger vehicle market was about 1.42 million units. Among them, retail sales of new energy vehicles could reach around 8.6 million units, and penetration surpassed 60%.

Behind the surge in new energy vehicle sales is inseparable support from financial tools. Through recent research, a reporter from Shanghai Securities News learned that auto finance tools represented by credit card installment plans have injected strong momentum into the recovery of auto consumption.

The auto consumption ecosystem is quietly changing

During the survey, many automobile dealers said that banks’ interest-subsidy schemes and low-fee installment products effectively reduce customers’ hesitation at the “last step,” directly improving transaction conversion rates.

Among them, the growing adoption of financial tools such as credit card installment plans not only lowers the consumer threshold for buying a car, but also quietly changes the auto consumption ecosystem. A person in charge of sales at a certain auto brand in Futian District, Shenzhen, told the reporter that compared with traditional auto loans, the biggest features of credit card auto installment plans are simple procedures, fast approval, and transparent fees. After consumers choose a model, they apply for an installment credit limit with a partner bank. The bank approves quickly based on credit status. After approval, consumers swipe their cards to pay the vehicle price, and then repay in monthly installments afterward.

Credit card installment plans for car purchases are not new. However, against the backdrop of the current consumption recovery and rising penetration of new energy vehicles, their role has been further amplified. An industry insider explained: on the one hand, banks are paying increasing attention to auto installment business, increasing investment, and providing consumers with more diversified product choices; on the other hand, consumers’ concept of using funds has become more mature, and reasonable borrowing and installment-based consumption have been widely accepted.

Taking a Guangfa Bank credit card as an example, its cooperation with Geely Group this April rolled out financial plans such as interest-free financing for 2 years for the Geely Galaxy. China Merchants Bank’s credit card provides preferential financial plans such as 5-year interest-free offers for the Tesla brand, effectively lowering residents’ car purchase costs in a tangible way.

With continuous efforts and investments from various institutions, credit card installment business has grown in volume and become a main force in supporting residents’ auto consumption. SPD Bank’s 2025 annual report shows that as of the end of 2025, the loan balance of credit card new energy vehicle installment business was 29.261 billion yuan, up 18.173 billion yuan from the end of the previous year, an increase of more than 160%.

A better auto market still needs more financial “fresh water”

The automotive industry is a pillar industry of the national economy, and auto consumption accounts for more than 10% of the total retail sales of consumer goods in society. Expanding auto consumption is an important starting point for stabilizing the economy and promoting consumption.

Since last year, from the central government to local authorities, a series of consumption-boosting policies have been introduced, including subsidies for trading in old for new, reductions in vehicle purchase taxes, and easing restrictions on car purchases. On the financial side, in August last year, the Ministry of Finance, the People’s Bank of China, and the National Financial Regulatory Administration jointly issued the 《Implementation Plan for Personal Consumption Loan Financial Interest Subsidy Policy》, which included household cars with a single-unit amount of 50,000 yuan or above in the scope of interest subsidies under personal consumption loans.

In the view of industry insiders, as one of the mainstream methods of auto loans, credit card installment plans are expected—under policy support—to further drive the auto market back to warmth. Dong Ximiao, chief economist of Zhaolian and deputy director of the Shanghai Financial and Development Research Office, suggested that credit card auto installment business should be included in the interest-subsidy scope as soon as possible to help unleash residents’ potential for auto consumption.

Dong Ximiao said: from the production side, subsidizing credit card installments helps maintain a reasonable auto price system, prevent price involution among automakers, and improve supply capacity and service levels; from the consumption side, installment interest subsidies can also amplify the multiplier effect of fiscal funds. By issuing personal credit cards alongside credit card auto installments, it can tap into car buyers’ day-to-day consumption and better play the synergistic effect between fiscal and financial policies. From the trend perspective, with the popularization of new energy vehicles, the renewal of consumption concepts, and improved accessibility of financial tools, it is expected to open a new golden window for auto consumption.

Zhang Ruifeng, Secretary-General of the Guangdong Greater Bay Area New Energy Vehicle Industry Technology Innovation Alliance, told reporters that current policies such as trading in old for new and vehicle purchase tax reductions have already laid a foundation for the auto market to recover. However, at present, financial services still have bottlenecks in lower-tier markets and among younger groups. He suggested introducing targeted interest-subsidy policies for first-time homebuyers, rural consumers, and users replacing fuel vehicles, reducing car purchase costs and guiding financial institutions to optimize their services.

(Edited by: Qian Xiaorui)

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