According to the China Automobile Value Retention Rate Research Report for May 2025 jointly released by the China Automobile Dealers Association (CADA) and Jingzhengu, zero down payment and zero-interest car purchase benefits have become important promotional tools for manufacturers and their financial companies in the market environment with high financial penetration.

The recent liquidity injection by the People's Bank of China has provided low-cost funding for auto finance companies, which is expected to further boost car consumption and implement the policy goal of "financial support for the real economy", the report added. The reserve requirement ratio dropping to zero will help auto finance companies not only gain an advantage over banks but also place higher demands on their own risk control capabilities.

When looking at prices, the report also noted that the new car price war from May to June is still ongoing, and price cuts may suppress activity in the used car market. However, as the overall market price rebound is beneficial in countering industry "involution", the used car market is unlikely to suffer from loss-making dumping.
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AAStocks Financial News
Web Site: www.aastocks.com

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