Toyota May Set Up Auto Financing Deal In China

Autoparts Report, June 2, 2000

Toyota Motor Corp. said it is working on plans to introduce a system of auto financing in China in order to broaden its customer base there.

Mao Saka, an official with Toyota's Nagoya was quoted as saying that plans were still at the "confidential" stage and said that it was too soon to announce any firm details. "We are now making plans to increase financing operations in Asia and are now considering the next step to introducing such a plan in the region," finance department official Saka said.

"Concerning specific countries, this is still under discussion...such a plan is still a confidential issue and I cannot comment on the exact timing (of when a financing plan would be introduced)," he added.

It still, however, remains unclear whether foreign auto finance companies will be able to form partnerships with domestic banks by taking stakes in them. The move is expected to give a huge boost to multinational auto manufacturers in China, which for years have pointed out that without easily accessible loans for individual car buyers, sales will be limited to large corporations and the very wealthy. This program will help Toyota market is new small car project in China.