NFRA Seeks to Accelerate New Energy Vehicle Sales by Cutting Loan Down Payments

Financial institutions are also being told to back tech start up so economic recovery can change gear

Li Yunze

New measures to reduce the size of down payments needed for car loans are being explored by authorities. Financial institutions are also being encouraged to support tech startups as part of broader efforts to create driving forces for economic growth, according to China’s top financial regulator.

“We are currently working on lowering the down payment for passenger car purchase loans and improving the insurance policies for new energy vehicles (NEVs) to encourage more households to buy cars, said Li Yunze, head of the National Financial Regulatory Administration (NFRA), the successor of the China Banking and Insurance Regulatory Commission.

The measures are among the NFRA’s policy tools to expand domestic consumption with incentives to encourage household spending, according to Li. He made the comments Monday on the sidelines of the Two Sessions, the annual legislative meeting.