Research On The Influence Of Auto Finance Abstract To Chinese Auto Intension

As one of pillars in our country, auto industry has been developing rapidly since entering WTO. However, although the capacity of auto industry is increasing at full speed, its sales and service haven't increased at the same extent, which lends to the reduction of making profit of the home auto industry in 2004.So the biggest difficulty for auto industry is how to gain higher return on investment. Meanwhile, other difficulties such as scattered distribution chaotic manufacture, low quality, backward technology, backward sales chain and weak follow up service restrict the whole industry's development. Especially, a census has been gained that auto industry should make full use of existing resource in order to adapt to globalization and the integration.In the global auto industry, financial service has been the most valuable and dynamic link in the whole auto chain. And auto finance has attracted all the society's attention from the history of the development in western auto industry, it is believed that very the financial service turned automobiles from "luxury items" to the popularly traffic tools and then pulled the rapid development of the whole auto industry. Fortunately, Chinese bank Supervisor Comity published Way to Manage Auto Financial Company on October 3, 2003.This measure is an important act for our country to fulfill the promise to WTO and to standardize the management of the automatic consumer credit businesses. It will bring about new appearance sooner or later although it's not very manure now.Auto industry is one of several industries, which will be affected deep by scale economy and regional intension has always been focused on at the strategic level. This paper tries to introduce the concept of auto finance into the strategy of auto industry's development based on the combination of foreign experience and domestic practice. It sees the intensive factors of auto industry as the theoretical basis andhopes to gain the target of integrating resource and optimizing internal structure by the adjusting of capital market and the realization of auto industry's intension. This paper concerns such deeply theories as industrial intension, industrial structure and the optimism. What's more? it takes account of current policies and market conditions, combines foreign experience and home status, and then puts forward some effective suggestions to specialize auto finance.