Core Viewpoint - The leadership in the automotive finance sector has shifted, with SAIC General Automotive Finance experiencing a significant decline in asset scale, overtaken by Mercedes-Benz Automotive Finance and Chery Huayin Automotive Finance [1][3]. Group 1: Industry Overview - The automotive finance industry is primarily composed of licensed non-bank financial institutions, with 25 companies approved by regulatory authorities, including manufacturer-affiliated finance companies [3]. - The main products offered by automotive finance companies include retail auto loans and dealer auto loans, focusing on retail loan services for individual consumers purchasing new or used vehicles [3]. Group 2: Performance Metrics - In 2022, the total asset scale of 21 automotive finance companies decreased by approximately 90 billion yuan, a decline of nearly 10%, with SAIC General Automotive Finance's assets shrinking by 40% to 67.6 billion yuan [3][4]. - Despite the decline in asset scale, SAIC General Automotive Finance maintained the highest annual operating revenue and net profit in the industry, with revenues of approximately 4.62 billion yuan and net profits of 2.31 billion yuan [2][5]. Group 3: Competitive Landscape - Mercedes-Benz Automotive Finance's asset scale, although reduced by over 15 billion yuan, remained above 83 billion yuan, surpassing SAIC General Automotive Finance [4]. - Chery Huayin Automotive Finance experienced a significant asset scale increase of nearly 42%, reaching over 72 billion yuan, making it the second-largest after Mercedes-Benz [4][6]. Group 4: Economic Impact - The automotive finance sector is facing pressure on operating performance, with 18 comparable companies reporting a combined operating revenue of 39.43 billion yuan in 2024, a year-on-year decrease of 8.5% [5]. - The overall asset quality of automotive finance companies remains stable, with a high proportion of secured loans and mature models for handling default loans [6]. Group 5: Future Outlook - The automotive finance companies are expected to continue shrinking in asset scale due to the declining ownership of traditional fuel vehicles, despite the growth in new energy vehicle production and sales [7][8]. - The profitability of automotive finance companies with strong competitiveness in the new energy vehicle sector is anticipated to improve, although the control of asset quality remains a concern [8].