Crédit Agricole Personal Finance & Mobility has finalized a significant milestone by acquiring a 50% stake in GAC Finance Leasing Co., Ltd., now renamed Guangzhou GAC-Sofinco Finance Leasing Co., Ltd. (GAC-Sofinco Leasing). This move, achieved through a reserved capital increase, marks a strengthened collaboration with one of China's leading automakers, Guangzhou Automobile Group Co., Ltd. (GAC Group).
Financial services firms set to win in Chinese automakers’ race into Europe
Driving growth in China’s electric vehicle market
The joint venture will offer financial and operational leasing solutions tailored to the Chinese market, with a specific focus on accelerating the adoption of electric vehicles (EVs). Currently, EVs account for 60% of GAC-Sofinco Leasing’s portfolio, which includes over 200,000 vehicles. This initiative aligns with the growing demand for sustainable transportation in China, a country at the forefront of the global EV market.
Expanding leasing solutions for sustainable mobility
This partnership builds on a longstanding relationship between Crédit Agricole and GAC Group, which began in 2009 with the creation of GAC-Sofinco AFC. This earlier joint venture already provides auto financing and services across a network of over 3,000 dealerships representing brands such as GAC-Honda, GAC-Toyota, AION, HYPTEC, and GAC Motor.
A long-term commitment to innovation and green mobility
Stéphane Priami, CEO of Crédit Agricole Personal Finance & Mobility, emphasized the strategic importance of this collaboration, noting that it enables both companies to support the dynamic growth of China’s EV market while deepening their long-term partnership.
All necessary regulatory approvals have been secured, with minimal impact on Crédit Agricole’s CET1 ratio. Through this venture, the companies aim to foster innovative leasing solutions that will further drive the adoption of eco-friendly vehicles in China’s burgeoning automotive sector.