DongFeng and PSA boost Chinese leasing industry
The Chinese customers of Citroen, Peugeot and Citroen’s brand DS will have the possibility to lease their new vehicles via the brands’ new captive leasing company.
This company will focus on long term leasing, with or without a purchase option at the end of the contract.
The new leasing company is a joint venture between 3 partners :
- 25% of the shares : DongFeng Motor Group (DFG), a stateowned car manufacturer, already involved in joint ventures with PSA, Kia, Renault and Honda
- 25% of the shares : Banque PSA Finance, the Peugeot, Renault & Citroen captive (Opel & Vauxhall to be included as well)
- 50% of the shares : DongFeng Peugeot Citroën Automobiles (DPCA), the existing joint venture allowing PSA to build cars on and for the Chinese market
According to Banque PSA Finance’s CEO, Remy Bayle, the JV will add value to the Chinese client looking for finance solutions that correspond to her/his specific usage. “This new activity will bring a strong support to the growth plan of DPCA” is how Mr. Bayle commented on the signature of the agreement.
DFG and PSA have already been working on various innovative solutions in China to respond to the mobility needs of the Chinese client. Offering new financing methods will complement these mobility solutions and create a comprehensive offering to the client.
The Chinese leasing industry is relatively young; with only a market penetration of 2.5%, the Chinese customer still needs to be convinced of the advantages of leasing versus purchase. Nevertheless, analysts such as KPMG trust the leasing industry to grow fast and achieve a penetration of 20% by 2026.