Shanghai, an economic powerhouse in eastern China, saw loans to auto buyers hit RMB 17 billion by the end of May, representing a year-on-year growth of 55%, the municipal banking regulatory commission said on Saturday.

As of the end of May, Shanghai's four auto financing firms, which account for two thirds of the city's auto financing market, had seen outstanding car loans surge 35.29% to RMB 10.62 billion.

Shanghai's loan quality has remained at a high level despite the increase in loans. The city's non-performing loan ratio for auto credits was below 1.2% and was less than the average ratio in the city.

Since 2004, the China Banking Regulatory Commission has agreed to establish 10 financing companies for motor vehicles.

Sales of domestically manufactured motor vehicles in China rose 14.29% year on year to 4.96 million units in the first five months of this year, according to China Association of Automobile Manufacturers.