Have always bring unexpected BYD to industry, the another new tactics: the Byd Company Limited (01211.HK: BYD) June 21st afternoon announcement says, will and the French Societe Generale Bank subsidiary, jointly set up a joint venture automobile financial company in Shenzhen, to provide financing for Chinese consumers to buy a car.

BYD said in a statement, the registered capital of the joint venture company is RMB 500000000 yuan, of which BYD will be funded 400000000 yuan, the French Societe Generale Bank subsidiary Compagnie Generale de Location D "equipements (CGL) will invest the euro and the equivalent of 100000000 yuan.

CGL in France in auto financing business.

In fact, in addition to providing loans for new customers, the finance company mission is different: the specific business scope mainly includes: purchase a car loan business, approved the issuance of financial bonds, sell or buy back a car loans to financial institutions, receivables, and car dealers procurement vehicle loans and operating equipment loans.

Will provide better service for the dealers, consumers

According to industry showed that: in the consumer level, financial companies will bring changes in two aspects: first, in addition to the car, the car consumption comes, because of the financial support, manufacturers will be able to further improve the car service, in addition to obtain considerable customer service profit, can gain the consumer more recognition from customer service. People often say: the first is to win customer sales, then the customer will be obtained by the after sale service of reputation effect. Two, because the customer service more timely and more detailed, manufacturers will be more get feedback about the quality. Improving quality is not only reflected in the vehicle technology, including sales and customer service aspects. Provide car service diversification, will make the brand quality has been more comprehensive growth.

In the distribution network level, because of good policy adjustment - brought last year, making this year the manufacturers are too high to raised expectations in May, not only the traditional red May, appeared to press a library phenomenon. Many brand dealers in the cash flow situation. Those who have their own financial companies, but for their own dealer financing, reduce its dealers, service providers burden. The establishment of the financial company, which later BYD dealer, will obtain loans through the BYD own auto finance company. People also good sales of BYD sighs, should know better, BYD on distribution network and dealers, with high sincerity, to the dealer firmly unite around him.

Bear the responsibility of financing is more important

Even if the above aspects, also makes financial become necessary automobile company. But, according to the authoritative personage analysis thinks: BYD established financial company, its purpose is far more than the above mentioned.

BYD financial companies should bear the broader task. That is a new project BYD several hot to provide financial support, such as Mercedes Benz cooperation technology ventures, technical cooperation and public companies, as well as the new base and new project financing.

In fact, for car companies, have their own financial company is the conventional means of. And many car companies have their own financial companies to Chinese, such as mass China, Toyota China etc.. Because of our own brand has not developed to this step, although the demand for financing urgently, but not their ability to operate financial companies, so, BYD finance company again BYD pulled ahead.

The joint venture company need including CBRC and other government departments for approval, if all goes well, a few months later, the company will be formally established and operated. In addition to providing purchase a car loan, accept the foreign shareholders and the group's wholly-owned subsidiaries in China and the domestic shareholders of more than 3 months deposit, an automobile dealers procurement vehicle margin loans, approved the issuance of financial bonds, engaged in the interbank lending, financial institutions to sell or buy back a car loan receivables, and auto dealers procurement vehicle loans and operating equipment loans. These are some startling function, then indicates the BYD has the financial company: except as a listing Corporation can raise money, the financial companies can also publicly issued bonds to financial institutions, to sell or buy back a car loan receivables and so on, to a certain extent, has the functions of financial institutions, financial institutions and docking with the domestic and international.

With the help of the financial companies, financial international stage, BYD will bring us to the surprise?

Before God in favor of Buffett, after the cooperation BYD than wearing, and the independent brand explosion more unpopular, not to our great surprise.

However, China this piece of land has no lack of miracle. Not auspicious, also not surprise takeover of one of the world's top three luxury brand Volvo?

Partner is very important

In fact, many car companies also brought a wholly owned or joint venture financial companies, however, may be the market conditions are not ripe, perhaps these financial companies failed to close the Chinese consumer beats, did not play like in Europe and the United States the same performance. So, BYD's cooperation with CGL, get industry attention.

CGL is a French bank Societe Generale Affiliated Companies, in France in auto financing business. One is the company has the banking background, two is the company's main business is to buy auto financing. If BYD can be learn words like in the car has the same, this joint venture financial companies should be able to quickly to play the role of expectations. According to Hong Kong quoted: BYD 21 at HK $63.20, up 5.25%. The Hang Seng Index in Hongkong rose 3.08%. It seems the Hongkong stock market also to BYD voted in favor of one.

So back then, when BYD battery to spend 269000000 yuan to buy 77% stake in Qinchuan automobile announcement, misgivings about four. In January 23rd, BYD share price drops to 4 yuan, or more than 21%, turnover of nearly 360000000 yuan, almost hit the highest since listing transaction records. Relative to the rising stock prices, the BYD these years in the automotive industry efforts, has the majority shareholders agree.

Will financial companies operating mode in China development

The establishment of the BYD financial company, also brought new try for the industry. Automobile industry is a technology intensive, personnel intensive, capital intensive industries, if the technology can learn, can dig it, then fund has been the bottleneck of the development of the company. Many companies try to appear on the market, but in order to raise the funds needed for development. However, a lot of money, but not listed can solve. For example, in the face of market does not stop unrest, funding problems the old dealer, the financing problem of new developed dealer, is by no means can take the stock market to raise money to give the distribution network.

While the financial company but also have the function of. Moreover, a source of financial companies and enterprise profit. With the financial help, many problems in development is no longer a problem, more enterprises into the healthy development track.

So, perhaps with the establishment and operation of BYD financial companies, many independent brands, but even the automobile industry, will learn from the mode of operation BYD financial company.