In the short term, the leasing effort will focus on businesses, car rental companies and hotels in Beijing. Later, the plan is to expand leasing to companies and private buyers across China.
"While leasing is very new in China, we believe it has the potential to grow over the midterm, especially as consumers understand more about the flexible and attractive financing options," said Ulrich Walker, chairman and chief executive officer of Daimler Northeast Asia.
Premium-car sales in China have been hit by the global financial crisis as government institutes and companies have tightened spending and private customers have turned to cheaper models. Although Mercedes-Benz had anticipated a slowdown in sales in 2009 after a 44 percent jump last year, auto analyst Zhang Xin of Guotai Jun'an Securities noted that Mercedes-Benz sales in China "fell short of expectations in competition with Audi."
The carmaker sold 38,700 units in China's mainland last year, compared with Audi's 119,598 units with a year-on-year growth of 17.3 percent during the same period.
Almost as new to China as leasing is the auto loan business for purchasers. Beijing Hyundai has recently linked with China Construction Bank and China Mingsheng Banking Corp to offer car loans. BMW has also started a car loan business in partnership with China Merchants Bank, while waiting approval for the opening of its own auto financing unit in China.
Mercedes-Benz started offering loans to car buyers in China in 2006.
Inside Line says: A new era of borrowing dawns in China at a difficult time for economies everywhere. — Vivian Jin, Correspondent
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