Zhong Guo Zheng Quan Bao·2025-06-17 21:14Core Viewpoint - The recent regulatory measures in Henan province aim to standardize auto consumer finance practices, capping the actual customer interest rate at no more than double the current one-year Loan Prime Rate (LPR), effectively limiting it to a maximum annual rate of 6% [1][2] Group 1: Regulatory Changes - Multiple banks in Henan, including Everbright Bank and Agricultural Commercial Bank of Henan, have announced measures to control financing costs for car buyers, addressing high commission issues [1] - The new regulations prohibit auto dealers from coercing customers into high-commission financial products and aim to stabilize the auto consumer finance market in Henan [1] Group 2: Market Dynamics - The previous high-interest, high-rebate model, which involved banks offering substantial commissions to auto dealers to boost market share, is being phased out due to regulatory pressures [2] - Banks are facing reduced profit margins as many customers are repaying loans early, leading to diminished interest income and increased operational costs [2][3] Group 3: Shift in Competitive Strategy - The industry is transitioning from a price war to value competition, with banks needing to enhance product design and service experience to maintain market competitiveness [3] - Some banks, like Ping An Bank, are adapting their auto finance strategies by focusing on electric vehicle loans and improving online loan processes to meet customer needs [3]