National Financial Regulatory Administration to Introduce Policy Aimed at Boosting Auto Sales
BEIJING – China will soon roll out a policy on lowering down payments on passenger vehicle loans, the National Financial Regulatory Administration (NFRA) said on Monday.
The financial regulator has in recent years summoned multiple meetings attended by commercial banks and auto finance firms, among efforts to improve car credit oversight, the NFRA said in a faxed response to an earlier Reuters report.
The policy on lower car loan down payments has proven “mature,” and would be unveiled in the near future, according to the NFRA.
Current rules set a minimum down payment of 15% for NEVs, 20% for internal combustion vehicles and 30% for used cars.
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The imminent policy will reduce the cost of car purchases and help in propping up auto sales, the regulator said.
Luxury EV maker Lucid to raise $1bn from Saudi’s PIF affiliate
Lucid said on Monday it is raising $1 billion in capital from an affiliate of Saudi Arabia’s Public Investment Fund (PIF), sending the shares of the luxury electric carmaker up about 8%.
The latest investment by the sovereign wealth fund underscores a key advantage Lucid has in the race for survival among struggling EV startups.
The Saudi government, which has a 60% stake, has invested billions in Lucid’s success as part of a strategy to diversify the Kingdom’s economy beyond oil.
Ayar Third Investment Company, a PIF affiliate, will buy $1 billion in convertible preferred stock and will be able to convert the preferred stock into about 280 million shares, according to a filing with the US securities regulator.
The California-based company, which has been facing weaker-than-expected demand, said it intends to use the proceeds for corporate purposes and capital expenditure, among other things.
Lucid is one of several EV startups hit hard by the slowdown in demand growth and a price war sparked by Tesla.
The EV maker, headed by a former Tesla executive, expects to make 9,000 units in 2024, compared with the 8,428 vehicles it made last year.
Lucid’s Air luxury sedans compete with Tesla’s Model S and luxury EVs from Mercedes-Benz, BMW, Audi and Porsche among other brands.
A major shakeup at Boeing on Monday as CEO Dave Calhoun announced he will step down from the top job by year’s end amid a sprawling aircraft safety crisis at the company.
The announcement likely extends the capital run rate, said Andres Sheppard, senior equity analyst at Cantor Fitzgerald, adding that Lucid is likely to make 9,500 vehicles this year and 20,000 units in 2025.
Lucid had said in its fourth-quarter financial presentation last month that it had sufficient liquidity “at least until 2025” and forecast $1.5 billion in capital spending in 2024 as it pushes to launch its Gravity SUV line later this year.
The company had $4.8 billion in available funds at the end of 2023, including $4.3 billion in cash.
