French banking giant Credit Agricole has announced its plan to acquire a 50% stake in GAC Finance Leasing, a subsidiary of Guangzhou Automobile Group, as part of its strategy to tap into China's rapidly growing electric vehicle market. This strategic move will be executed through a reserved capital increase, allowing Credit Agricole's CA Personal Finance & Mobility division to become a significant player in the Chinese leasing market.

The acquisition is expected to bolster the existing partnership between Credit Agricole and GAC Group, which dates back to 2009. The two companies have previously collaborated through the GAC-Sofinco AFC joint venture, which provides automotive financing and services across China. This new venture will further enhance their offerings, particularly in the electric vehicle sector, which already constitutes 60% of GAC Leasing's contracts.

Stephane Priami, CEO of Credit Agricole Personal Finance & Mobility, emphasized the importance of this transaction, stating that it reaffirms the long-standing partnership with GAC Group and supports the dynamic growth of the electric automobile market in China. The deal is also expected to have a limited impact on Credit Agricole's CET1 ratio, indicating a stable financial outlook for the bank.

This acquisition aligns with Credit Agricole's broader strategy to lead in electric mobility across Europe and beyond, as the company continues to expand its financial and operational leasing solutions globally. With over 200,000 vehicles in its portfolio, GAC Leasing is well-positioned to capitalize on the increasing demand for electric vehicles in China, a market that saw a 30.5% increase in sales of fully electric and plug-in hybrid vehicles in September alone.