China's auto market outlook in 2022

Hui Liang, China partner at Deloitte Management Consulting

The future of automobile finance is good, and the residual value management of trams is explored

China's auto finance market as a whole is under a certain pressure caused by the slowing growth of auto sales, and the Oems of the manufacturer system are facing the impact from financial leasing companies and banks. However, compared with the penetration rate of auto finance in mature countries (more than 70% for new cars), the financial penetration rate in China still has room to rise even if the overall growth of auto sales slows down. Therefore, the growth momentum of China's auto finance market will not change in the short term.

On the other hand, due to the gradual strengthening of competition in the industry, the carrier of auto finance, in addition to the mature new oil vehicles so far, will face the issues of how to do a good job in the rapidly rising second-hand car market and new energy vehicle market. Although so far due to the second-hand cars, new energy vehicles there are some difficulties in the assessment of residual value, low retention rate and do not want to be involved, but the market trend can not be changed after all, how to do these difficult markets will become the key point of differentiation competition. Due to the technological development of the automobile industry and the gradual changes in market demand, new trends such as car-electric separation and travel services will further bring great pressure on the traditional products and traditional business models of auto finance, and in the long run, the possibility of disruptive changes to the industry cannot be ruled out.

Zhang Zhen, Deloitte China risk advisory partner

In the era of strong compliance, car companies need to internalize data compliance and cybersecurity capabilities

In 2021, the automotive industry enters the era of strong compliance supervision in the field of network security and data compliance, which is the first year, and a series of domestic laws and regulations including personal information protection law, data security law, automobile data security management regulations, and strengthening the requirements of Internet of vehicles network security and data security make most car companies overwhelmed. In 2022, the state will also introduce new regulations and mandatory standards, and some boots will land, but car companies should be more proactive and positive about how to build a systematic network security and data compliance capability, and implement digitalization, big data, vehicle networking, and connected vehicle business more efficiently from security governance, compliance and security management, compliance and security technology and other aspects. Timely security and data compliance controls.