Acquisitions signal vote of confidence in European auto sector

A series of new deals has served as a vote of confidence in the future strength of the European automotive finance sector.

The headline takeover has been Arval’s acquisition of its multi-marque rival Athlon from Mercedes-Benz Group, to create an international powerhouse in the leasing and fleet management market. The combined operation will operate a fleet of 2.3 million vehicles, giving it greater scale, enhanced operational capabilities and paving the way for increased investment in innovation.

Arval’s owner, BNP Paribas expects the transaction to generate a return on invested capital of around 18%, and said the acquisition aligns with its strategy of strengthening profitable platforms in growth markets.

Arval’s chief rival, Societe-Generale’s Ayvens, reported a 7% year-on-year rise in leasing and services margins and lower operating costs in Q2 2026, although a normalisation of the used car market dented its disposal profits and saw overall profits slip 8.7% to €248 million.

On a smaller scale, the European Investment Bank has agreed a €48 million financing package at favourable rates with Drivalia, to accelerate the electrification of corporate fleets in Italy and Finland. Drivalia is the rental, leasing and mobility arm of Crédit Agricole Auto Bank, and runs a fleet of 205,000 vehicles in 16 countries.

In a deal 15 times larger, vehicle leasing company Leasys has successfully priced a €750 million senior unsecured bond issue. Leasys, a joint venture between Stellantis and Crédit Agricole Personal Finance & Mobility, manages a fleet of more than 912,000 vehicles and said the bonds were almost 2.5 times oversubscribed.

But Stellantis has decided to sell its stake in the car sharing business Free2Move, with private equity investor Mutares snapping up the car sharing business.

Stellantis wants to concentrate on its core automotive operations, as it prioritises investment in regions, brands and technologies capable of delivering the strongest long-term returns. The manufacturer returned to profit globally in Q2, although the enlarged Europe area of 30 countries was the only region where it recorded a negative operating margin.

Chinese brands are securing an ever greater share of Europe’s new car market, according to data from JATO Dynamics, with BYD, MG, XPeng, Leapmotor, Zeekr and Omoda/Jaecoo making ground. These OEMs are capitalising on the rising sales of battery electric cars, which accounted for more than a quarter of new car registrations for the first time in June.

New car sales in the European Union were up 5.7% year-on-year in the first half of 2026, to 5,896,683 registrations, according to ACEA. The growth was propelled by a 40.5% rise in BEV sales to 1,220,890 units, representing a 20.7% market share.

Commercial vehicles also had a positive six months, with new van, truck and bus sales all recording growth. Van registrations rose 1.9% year-on-year to 742,759 units, truck sales climbed 9.8% to 171,933 units, while buses delivered the strongest performance, with registrations increasing by 22.7% to 22,590 units.

Electrically-chargeable commercial vehicles gained market share, but diesel continues to dominate, with sales of battery-powered vehicles constrained by insufficient enabling conditions, according to ACEA.