Chinese carmaker chooses Arval UK for fleet funding

Chery International, parent company of Chinese car brands Omoda and Jaecoo, has signed a financial services agreement with BNP Paribas Personal Finance UK and Arval UK. 

The deal followed a competitive tender process to provide UK dealers for Omoda and Jaecoo and fleet customers with a full range of finance solutions.

Chinese manufacturers are accelerating plans to expand into the global market as they seek to forge a sustainable and profitable future.

Faced with an intensely competitive home market, with more than 200 car and van manufacturers jostling for supremacy, Chinese brands are keenly eyeing Europe and the UK as an important growth target.

Chery International is the largest automotive exporter in China, and collectively Jaecoo and Omoda are one of the fastest growing automotive brands in the world.

The collaboration will support their further expansion into Europe, launching in the UK automotive market, with both internal combustion engines (ICEs) and electric vehicles (EVs).

BNP Paribas Personal Finance UK will provide consumer finance, and Arval UK will offer fleet and contract management services.

Lakshmi Moorthy, managing director of Arval UK, said: “We’re delighted to have been chosen as the partner for Omoda and Jaecoo UK, to provide contract hire for their customers and support their dealer network.

“These are two exciting new brands and we look forward to assisting their growth in the UK.”

She added: “It is further evidence of the appeal of the combined capabilities of BNP Paribas Personal Finance and Arval in providing the full range of products to support manufacturers in the UK and across Europe.”

Initially, Omoda will launch two car models, the Omoda 5 and E5, which will be available for purchase from July 2024 at 62 retailers across the UK — before Jaecoo releases its first model later this year.

Victor Zhang, executive vice president at Omoda and Jaecoo UK, said: “We have big ambitions for Europe and have worked hard to try to bring the best products. However, we know that in the oldest automotive market in the world, we need to have the best partners to offer our customers the best experience throughout their journey with us.

“We're delighted to be working with BNP Paribas in the UK. This is an exciting partnership with a very experienced company and experts in their field.

“Together we can develop what we feel will be not only a very competitive offering but something special for a newcomer to this competitive market.”

Globally, Arval was leasing more than 1.7 million vehicles as at the end of December 2023. Within the UK, it leases more than 194,000 vehicles of which almost 48,000 are electric.

Stephen Hunt, CEO of BNP Paribas Personal Finance UK, said: “We have built a business that is focused on building strong partnerships and it is an exciting time as we push further into the UK automotive market.

“I am confident that we will bring the same level of innovation and service as we have brought to the retail sector and our 4 million UK consumers.

“With this expansion of our motor finance solutions into the new car sales segment, this partnership with a fast-growing OEM is the first of its kind for the UK and forms part of BNP Paribas Personal Finance’s wider ambitions to further establish itself as a leading provider of finance solutions in the automotive market in the UK and across all major European markets.”