** Autofinance Studies.
Editor's note
Auto finance is developing rapidly in China, and now in the context of regulatory encouragement, overseas markets are also ushering in Chinese auto finance players.
What are the current auto finance companies going overseas?How is the business doing?Is the setup process complicated?This article will give answers to these questions.
On November 28, 2023, FAW Financial Services (South Africa)**hereinafter referred to as "FAW South Africa"), FAW Group's first overseas auto finance company, achieved its first overseas loan.
It has been about half a year since FAW South Africa was incorporated.
On June 1, 2023, FAW Financial Services (South Africa)** was incorporated.
On July 20, 2023, the unveiling ceremony of FAW South Africa was jointly held in Changchun, China and Johannesburg, South Africa.
The person in charge of FAW South Africa is Ms. Liu Xiao, who served as a supervisor of FAW Auto Finance.
It is understood that the main brand of FAW South Africa's service is Jiefang Truck.
On July 10, 2014, FAW's Kuha plant in South Africa was officially completed and put into operation, and the first Jiefang truck produced in South Africa rolled off the assembly line, which is the first large-scale overseas production base construction project of FAW Group. In the nine years since it was put into operation, FAW's South Africa plant has produced and delivered a total of 12,590 Jiefang trucks.
FAW Financial Services (South Africa)** is the second auto finance company in China to go overseas, and the first auto finance company to go overseas is SAIC-GM-Wuling Multi Finance Indonesia, a subsidiary of SAIC Group.
On the afternoon of September 27, 2018, the representative of SAIC Hong Kong Investment, SAIC Motor, Chief Financial Officer Wei Yong, General Manager of SAIC-GM-Wuling Indonesia Automobile Co., Ltd., Michael Kanarios, Chief Strategy Officer of General Motors Financial Services Co., Ltd., and Indra Widjaya, Chairman of the Board of Supervisors of Sinar Mas Financial Listed Company, jointly signed the agreement of SAIC-GM-Wuling Multi-Financial Indonesia The joint venture agreement marks the official establishment of SAIC and China's first auto finance company in Indonesia.
SAIC-GM-Wuling Multi-Finance Indonesia has a registered capital of IDR 600 billion (about 300 million yuan), and its main shareholders include: SAIC Motor Hong Kong Investment *** 38% shareholding, SAIC-GM-Wuling Indonesia Automobile *** 24% shareholding), General Motors Financial Services Company (19% shareholding) and Indonesia Sinar Mas Financial Company (19% shareholding).
SAIC-GM-Wuling Multi-Finance Indonesia Co., Ltd. was issued a business license by the Indonesian Financial Supervision Authority in March 2019 and opened on May 9, 2019, and has established 146 sales outlets in Indonesia, covering the automobile consumer loan business of Wuling and MG across the country, forming an operation model based on the SAIC brand and supplemented by diversified finance.
Mr. Wang Tao currently serves as the Chairman of SAIC-GM-Wuling Multi-Asset Finance Indonesia and previously served as the Executive Vice President of Risk Control of SAIC-GM Finance Co., Ltd.
At present, SAIC-GM-Wuling Multi-Finance Indonesia has matured its operations, and has fully opened financing channels overseas, and has reached financing credit cooperation with many overseas banks such as HSBC Indonesia, Indonesia Gem Bank, Indonesia Central Asia Bank, BNP Paribas, and Indonesia Mandili Bank.
In PT Sinar Mas Multiartha TBK's Annual Report 2022.
As of the end of December 2022, the total assets of SAIC-GM-Wuling Multi-Financial Company have exceeded 2IDR 73 trillion (about 12.)6.7 billion yuan or 1$7.8 billion, November 30, 2023).
Article 11 of the new version of the Measures for the Administration of Auto Finance Companies, which came into effect on August 11, 2023, clearly states that with the approval of the State Administration of Financial Supervision and Administration, auto finance companies may establish overseas subsidiaries. The specific establishment conditions, procedures and regulatory requirements shall be formulated separately by the State Administration of Financial Supervision and Administration. This is interpreted as the State Administration of Financial SupervisionEncourage auto finance to accelerate its overseas expansion.
At present, the first problem faced by the establishment of an auto finance company overseas is the local regulatory policy requirements, and due to the difference in national conditions, the procedures for setting up an auto finance company overseas are not the same as those in China.
Personally, I believe that Southeast Asia will become the preferred region for auto finance to go overseas in the future. Currently, SAIC Motor (Chia Tai plant in Thailand, Wuling plant in Indonesia), BYD (Rayong plant in Thailand, the first overseas passenger car plant, laid the foundation stone on March 10, 2023, and is expected to start production in 2024), Great Wall (Rayong plant in Thailand), Changan (Rayong plant in Thailand laid the foundation stone on November 8, 2023, the first overseas base), Chery (plans to set up plants in Indonesia, Malaysia, and Thailand), GAC Aion (plans to set up a plant in Rayong, Thailand, and the first phase is expected to be completed in July 2024) and even Nezha Automobile (the foundation stone of the Thailand plant was laid, the foundation stone was laid on March 10, 2023, and production is expected to start in 2024) are all (planned) to focus on Southeast Asia.
Attached are the necessary steps to set up a licensed (formal) financial company in Indonesia
1.The capital of the newly established financial company shall not be less than IDR 100 billion (about 50 million yuan).
2.The minimum shareholding ratio of local shareholders in Indonesia must not be less than 15%.
3.At least 50% of the members of the company's board of directors and supervisory board must be Indonesian citizens. As Indonesia, it is also natural to protect the interests of the country. But there is a basic concept to be clear: in Indonesia, the board of directors is the management team responsible for the day-to-day operations of the company, similar to the executive committee, rather than the shareholder representatives, as it is commonly seen in the country. The Board of Supervisors is appointed by the shareholders to supervise the risk prevention and compliance operations of the Board of Directors, but shall not interfere with the day-to-day operations of the Board of Directors.
4.Depending on the size of the company, companies with assets of more than IDR 200 billion must have independent supervisors, who must not have any business ties or conflicts of interest with the company. The highest authority of the company is the general meeting of shareholders, which is composed of representatives of the company's shareholders and is responsible for deciding on the company's strategy and major policies, as well as approving the company's annual budget and important matters.
5.All members of the board of directors and supervisory board of financial companies, as well as controlling shareholders, must pass the examination of the Indonesian Financial Services Authority (OJK). The assessment is divided into two stages: written test and interview. Before taking the written test, you must receive a two-day special training from the Association of Financial Companies. The written exam is a one-hour closed-book exam consisting of a two-day training course with questions and answers and brief questions. The answer must be in Bahasa Indonesia or English, and a score of 65 or above will be considered as a pass.
The written test is followed by an interview, which is generally scheduled within one month after the application materials are complete. However, how to count the information is complete is judged by the auditors of the Indonesian regulator according to different situations.