Crédit Agricole Personal Finance & Mobility finalises GAC Leasing project

Crédit Agricole Personal Finance & Mobility has successfully finalised its acquisition of 50% of GAC Finance Leasing Co. Ltd. (GAC Leasing), marking a significant step towards expanding electric vehicle (EV) financing solutions in China.

The newly restructured entity, now named Guangzhou GAC-Sofinco Finance Leasing Co Ltd (GAC-Sofinco Leasing), is the dedicated leasing company of Guangzhou Automobile Group Co., Ltd. (GAC Group), one of China’s largest automotive manufacturers.

In 2023, GAC Group was the fourth-largest automotive group in China, selling over 2.5 million vehicles worldwide. Among these, 39.90% were electrified vehicles, reflecting the company’s strong commitment to sustainable mobility and innovation in the automotive industry.

The transaction reinforces a partnership between Crédit Agricole Personal Finance & Mobility and GAC Group that dates back to 2009. The two companies previously established GAC-Sofinco AFC, a 50-50 joint venture providing automotive financing and services across China. GAC-Sofinco AFC has played a crucial role in supporting dealerships and customers within the GAC-Honda, GAC Toyota, AION, HYPTEC, and GAC Motor networks, covering more than 3,000 dealers nationwide.

With the completion of a reserved capital increase, Crédit Agricole Personal Finance & Mobility now holds a 50% stake in GAC-Sofinco Leasing. The company, which has been active in China since 2004, offers a broad range of financial and operational leasing solutions tailored to GAC customers and dealership partners.

The formation of GAC-Sofinco Leasing is a strategic move aimed at enhancing leasing options for Chinese customers and accelerating the adoption of electric vehicles. Currently, EVs account for 60% of the company’s leasing contracts, with a portfolio exceeding 200,000 vehicles. This development aligns with China’s broader push towards electrification and sustainable transportation.

All necessary approvals from regulatory authorities and competition bodies have been obtained. The impact on the Common Equity Tier 1 (CET1) ratio of Crédit Agricole S.A. and the broader Crédit Agricole Group is expected to be very limited.