The BMW Group is buying Herald Leasing, one of the China’s leading providers. BMW said it’s reacting to the importance of the emerging leasing business in the world’s largest vehicle market, and laying the foundation for further growth. The parties have agreed not to disclose any contractual details.
China is the largest single market for the BMW Group worldwide. As the leading manufacturer of premium vehicles, the company delivered 343,000 BMW, MINI and Rolls-Royce vehicles to customers in the first nine months of 2015.
One of Herald Leasing’s cited strengths is its broad geographic base in China. To be able to offer leasing services across the country, companies in China need local business permits – lot of room for unsavory Communist Party behavior here – as well as a national leasing license – ditto. Herald Leasing is already present in 58 Chinese cities and offers leasing at all those locations.
With its wide coverage, Herald is one of the largest leasing providers in China. The company founded in 2009 employs 250 people. Reported revenues during 2014 were RMB 208.
“We firmly believe in the medium and long-term potential of the Chinese auto market and are preparing for the next phase of growth,” said Erich Ebner von Eschenbach, head of BMW Group Financial Services. “New business areas, such as leasing and fleet management, will be an increasingly important part of this.”
