How lenders are navigating the threats and opportunities of electrification

“Plus ça change, plus c’est la même chose.” The themes that preoccupied Europe’s vehicle manufacturers and auto finance companies last year will continue to shape 2026.

Intense competition from new Chinese OEMs, allied to constant uncertainty over US tariffs – back on the agenda over President Trump’s designs on Greenland – challenge the auto industry at a time when European authorities are pushing their environmental agenda hard.

This presents opportunity and threat to lenders.

On the opportunity side, the European Investment Bank is providing a €300 million credit envelope to Leasys to expand zero emission motoring across Europe.

CA Auto Bank has also strengthened its European footprint, converting its local operations in Austria and Greece into direct branches of the group’s Italian parent company. The group has implemented similar transformations in Ireland, Belgium, Poland, France, Portugal, Spain and Germany, and says the direct subsidiaries create a more integrated organisational model and strengthen coordination with its headquarters.

On the threat side, the European Commission has proposed a Greening Corporate Fleets programme that would mandate large companies to include a certain percentage of zero emission cars within their orders. Company cars drive farther and change ownership more quickly than private cars, so electrifying them cuts emissions and accelerates the supply of EVs into the used market, according to the Commission.

The organisation argues that EV uptake depends on strong incentive frameworks, faster deployment of charging infrastructure, and measures to address the residual value crisis impacting used EVs.

New data from Arval Mobility Observatory supports the view that corporate fleets are in the vanguard of EV adoption in key markets such as Germany, Belgium, Netherlands and the UK. Supportive tax incentives have played key roles in all of these countries.

Arval itself has entered exclusive negotiations to buy multi-marque international leasing company Athlon from Mercedes-Benz Group. The deal would add 400,000 vehicles to Arval’s 1.9 million strong fleet, creating an international rival closer in scale to Ayvens (created when ALD Automotive acquired LeasePlan).

Extending its reach through financial services, Arval has also announced that its Dublin-based captive, Greenval Insurance, now insures more than one million vehicles across Europe, giving it the scale to compete with the largest automotive insurers in the European market.

He was previously Management Board Member for Sales and Marketing, and succeeds Dr. Christian Dahlheim who is leaving the group to become Chief Executive Officer of Pon Holdings, the Netherlands’ largest mobility company.