International scale important in auto finance

The value and importance of international scale in automotive finance has come to the fore in the past month, as lenders extended their operations through partnerships.

Ayvens has signed a new partnership with China’s largest automotive exporter, Chery Group, to expand European mobility and leasing options for its OMODA & JAECOO brands.

The agreement covers seven European markets – Germany, France, Italy, the Netherlands, Belgium, Poland and Luxembourg – and will see Ayvens provide white-label leasing products for small businesses, professionals and private customers through OMODA & JAECOO’s dealership network.

Ayvens itself posted a strong set of Q3 financial results, as it returned €700 million to shareholders in the form of a €360m share buyback and a €240m one-off dividend. The firm reported a 20.1% increase in its leasing and services margins compared to the same quarter of last year. Overall, Ayvens reported pre-tax profits up 69.6% year-on-year in Q3, 2025 to €389.5m, and 38% up for the first nine months of the year to €1,091m, despite its fleet size shrinking by 3.7% year-on-year to 3.2 million vehicles.

CA Auto Finance is another lender extending its international reach. In Germany, the bank has expanded its partnership with Chinese OEM BYD to include wholesale financing for both new and inventory vehicles.

The Credit Agricole Group subsidiary already provides finance, leasing and insurance products to BYD customers and dealers in Germany, and works with the manufacturer in Italy, France, Spain and Switzerland.

CA Auto Finance is also widening its partnership with vehicle warranty specialist Opteven from France and Italy to the UK. The agreement will offer buyers financing their vehicles through CA Auto Finance access to a suite of mechanical breakdown warranties and value-added protection services.

Despite ferocious competition in the new vehicle market, two largely European manufacturing groups reported growth in Q3. Stellantis increased its vehicle sales by 13% to 1.3 million units, which boosted its net revenues by a similar percentage to €37.2 billion.

And Volkswagen Mobility Group, which delivers financial and mobility services to the Volkswagen Group, achieved a 36.9% increase to €2.89 billion in its operating results for the first nine months of the year, compared to the same period of 2024. This included a 3.9% rise in new contracts to 7.82 million units, and a substantial improvement in margins.

Across the EU, new car sales nudged up by 0.9% for the first nine months of the year, although the 16.1% market share of battery electric vehicles (BEVs) is insufficient for OEMs to meet their CO2 targets.

European buyers are opting for hybrid and plug-in hybrid models rather than full battery power.

Decarbonisation delays are even more acute in the commercial vehicle market, where total van sales were down 8.2% year-on-year for the first three quarters, and trucks sales dipped by 9.8%. Zero emission vehicles accounted for 10.2% of new vans registrations, and 3.8% of truck sales, with diesel dominating the market.

ACEA, the European Automobile Manufacturers’ Association, said eLCV sales needed to reach 15-20% of the market for OEMs to meet their CO2 reduction targets. It has called for improvements in charging infrastructure and fiscal incentives, as well as the elimination of regulatory inconsistencies that treat eLCVs as trucks in some markets due to the extra weight of battery packs.