BMW AFC marks 15-year anniversary with commitment to growth in China

BMW Automotive Finance (China) Co is celebrating its 15th anniversary this year — a milestone that underscores not only the company's growth but the rapid evolution of China's automotive market.

Since its establishment in 2010, the company has followed an "In China, For China" approach, pairing technological innovation with a deep understanding of consumer needs to fuel sustainable growth in one of the world's most dynamic car markets.

"China is one of the world's most innovative and promising automotive markets. We are fully confident about the future," said Joerg Friebel, CEO of BMW AFC.

"Over the past 15 years, we have remained customer-centric and innovation-driven, actively adapting to market changes and leading industry transformation. Going forward, we will continue to deepen our roots in China and work with our partners to shape a new future of sustainable mobility."

BMW AFC's journey mirrors the evolution of China's automotive industry.

To date, the company has served more than 2.6 million customers and partnered with dealerships in about 250 cities nationwide, achieving nearly full retail coverage.

Friebel, who has spent the past six years in China, said he has witnessed significant shifts in consumer behavior.

"Chinese consumers are now more rational and value-driven. In the past, people might buy a luxury item simply because they could, but today they care more about whether it is worth the price," he explained.

"They also focus on the total cost of ownership, comparing different loan terms and interest rates over three or five years. This has changed how we design financial products."

Consumers are also gathering information in new ways. "Most potential buyers who visit a BMW dealership already have a strong understanding of the products thanks to apps and social media," Friebel noted.

"That's why we've built digital channels, from our own app to online pre-approval tools, to provide end-to-end services. Customers can calculate loans, get pre-approved, and even complete financing plans online before setting foot in a showroom."

BMW AFC's online presence reflects this shift. Its official WeChat miniprogram had nearly 800,000 users by August 2025, up almost 80 percent from a year earlier.

Technology is central to BMW AFC's strategy. The company has adopted Advanced Business Intelligence, Robotic Process Automation and Digital Collateral Management to raise efficiency.

Digital services such as "eFinance" and AI-powered customer support have enabled nearly 70 percent of loan applications to be decided automatically within seconds and more than 70 percent of contracts to be settled without manual intervention. The first-contact resolution rate now exceeds 99 percent.

"China's rapid development in artificial intelligence and big data is fundamentally changing the way we provide financial services," Friebel said.

"Innovation allows us to improve risk management, make data-driven decisions and control costs, while understanding customers better. All of this creates more opportunities for us to offer faster and more efficient services."

BMW AFC offers a wide range of retail finance products — zero down payment, low interest rates, balloon payment plans and flexible installments — to lower the barrier to car ownership.

"Our goal is to help more people realize their BMW dream," Friebel said.

BMW Financial Services has also built three growth engines of finance, leasing and insurance.

Alongside BMW AFC, BMW Group acquired Herald International Financial Leasing in 2016 and established BMW (China) Insurance Brokers in 2022.

"Few foreign joint ventures in China can match this full-chain financial service capability," Friebel said.

"We made a strategic move years ago to enter the leasing business, which still has huge growth potential. Leasing products already account for about 8 percent of the overall auto finance market, and we expect further expansion as the used-car leasing segment matures."

Commercial financing now spans traditional internal combustion vehicles, new energy vehicles, motorcycles and parts. Friebel described the company as a "cornerstone" partner for dealers, providing reliable support in a volatile market.

Behind BMW AFC's performance is a robust risk-control system that relies on intelligent modeling and big-data analytics.

The company strictly follows Chinese laws and regulations and applies both domestic and international data security standards to safeguard customer information.

Friebel emphasized that risk control is "a top strategic priority" as market competition intensifies and regulation tightens.

"With 15 years of customer data in China, we can use this information more effectively to understand financial profiles and classify customers for better retail risk management," he explained.

"At the same time, we continuously study evolving laws and regulations to ensure that every wholesale or custodial product fully complies with Chinese requirements."

BMW AFC has also taken concrete steps to protect dealers and retail customers. "Over the past two years, we have introduced multiple measures to support dealers facing financial challenges," Friebel said.

"In retail finance, we sometimes hear of fraud or loan scams. Our AI-based online application monitoring platform tracks and compares nationwide loan applications in real time, allowing us to identify potential linked transactions or organized criminal activity early and defuse risks."

Such proactive measures give automotive finance companies an edge over banks. "Our information channels with BMW and the dealer network are fully integrated, which means we understand customers deeply," Friebel noted.

"That understanding is our biggest advantage. It allows us to predict risks more accurately and provide the right financial products with greater prudence."

Despite recent market challenges, Friebel remains optimistic. "We see China as a fast-developing and dynamic market where change brings opportunity," he said.

"From a macroeconomic perspective, both the government and international institutions expect continued growth. China's middle class — our core target group — still has room to expand, and vehicle ownership per capita remains relatively low. This all points to further market potential."

BMW AFC's penetration rate in BMW vehicle sales currently stands at around 20 percent, a level Friebel considers highly competitive even as banks and other financial institutions seek a share of the market.

"We will always strive for higher," he said, "but the key is to maintain strong customer relationships and sustainable growth."

Reflecting on his tenure, Friebel highlighted the resilience of his team and the strong bonds with dealers.

"We went through the pandemic and intense market competition together. Our relationships with dealers have become closer than ever, and we are seen as a steadfast partner," he said.

A milestone achievement was the establishment of BMW's insurance brokerage, one of the first foreign companies to secure such a license in China.

Friebel also treasures the personal moments that underscore BMW AFC's connection to its customers.

"I was touched when a customer once handwrote Spring Festival couplets for us," he recalled. "That kind of warmth is rare in other markets."

As BMW Group rolls out its Neue Klasse models for an electrified and digital future, BMW AFC plans to keep pace with innovation.

Guided by its 15-year commitment to "In China, For China", the company aims to provide high-quality financial solutions that support the sustainable growth of the BMW brand and help more Chinese customers drive their dream cars.

"We will continue to innovate, deepen our roots in China, and work with our partners to shape the future of mobility," Friebel said.