Geely Automobile Holdings Limited and BNP Paribas Personal Finance received approval from the CBRC to start the set-up of the auto finance joint venture company
Geely Automobile Holdings Limited and BNP Paribas Personal Finance confirmed today that they have received approval from the China Banking Regulatory Commission (CBRC) to start the set-up of a joint venture company engaging in auto financing activities in the People’s Republic of China (PRC). This is a key milestone for the launch of the joint venture in compliance with the relevant PRC laws and regulations within the next six months.
Upon completion of the preparation, the joint venture company will officially apply for commencement of operations in accordance with the applicable requirements and procedures in the PRC. The joint venture company aims to provide auto financing products and services in the PRC, including wholesale financing solutions to auto dealers to finance the purchase of cars as well as retail financing solutions to end-customers.
It is expected that the wholesale financing activity will be launched as soon as the operations commencement approval is received from the CBRC and applicable regulatory authorities in the PRC. The retail financing activity will follow by end-2015.
According to the “Observatoire Cetelem de l’Automobile 2015” (1), the People’s Republic of China is now the world’s largest automotive market. With almost 21 million new passenger vehicles registered in 2013, the Chinese market has eclipsed the American market (2) and is the key driver behind global automotive consumption.
Geely Auto’s Executive Director, Mr. AN Cong Hui, commented, “We are pleased that the auto financing project has been progressing smoothly. I believe this new partnership with BNP Paribas Personal Finance will help create more value to our dealers and end-customers in a professional and efficient way. By leveraging the expertise from our partner, we will be able to build an edge and increase sales volume in the market. Geely Auto will allocate the best resources to ensure the success of the joint venture.”
Chairman and CEO of BNP Paribas Personal Finance, Mr. Thierry Laborde, said, “We are extremely happy to meet the timetable we have established with Geely Auto and to see the first step in concretizing the joint venture. We are keen to support the development of the leading growth market in the world for the automobile industry. Not only is China’s car ownership rate per 1,000 inhabitants rising 13% a year in average, but the country shall also double its world market share by 2020 (3). We look forward to working together with Geely Auto in order to bring auto financing services to the Chinese customers.”
Chief Executive Officer of BNP Paribas Asia Pacific, Mr. Eric Raynaud, said: “BNP Paribas is dedicated to growing its business in China, which is a key growth market in its Asia Pacific Development Plan. We are pleased to set up the joint venture with Geely Auto, which will further boost BNP Paribas’ franchise and client offering in the market. BNP Paribas has been active in forming strategic alliances with leading local partners in the Asia Pacific region for the synergy of combining our global expertise and their local insights. We believe this is a key to success to drive our business growth in Asia Pacific in the coming years”.