November 8, 2017 / 10:15 AM / a year ago

China sets max loan ratio for new energy car loans at 85 pct

BEIJING, Nov 8 (Reuters) - China’s central bank and the country’s banking regulator on Wednesday set the maximum loan ratio for purchasing new energy vehicles for self-use at 85 percent.

The ratio for the purchase of new energy vehicles for commercial use is 75 percent, said the notice jointly issued by the People’s Bank of China and the China Banking Regulatory Commission and posted on the central bank’s website.

The new rules stipulate a separate loan ratio for new energy vehicles for the first time, while keeping the ratio for the purchase of traditional combustion engine vehicles at 80 percent and 70 percent for self-use and commercial-use, respectively.

China has signalled a long-term aim to shift towards new-energy vehicles, but has also been phasing out subsidies, raising concerns from some automakers that consumer demand alone will not be enough to drive sales.

The loan ratio for used car purchases was raised from 50 percent to 70 percent, the notice said, with the new rules going into effect on Jan. 1 of next year. (Reporting by Beijing Monitoring Desk; Editing by Jacqueline Wong)

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