Renault, through its financial services division Mobilize Financial Services, has entered into a non-binding agreement with Santander to establish a joint venture dedicated to car leasing in Europe. The venture, expected to be finalised by year-end, will focus on long-term rentals and leasing with an option to buy, particularly for electric vehicles.
This move reflects the growing significance of the car leasing sector, which currently accounts for 30% of market registrations in Europe and is projected to reach 50% in the long run. Renault's collaboration with Santander follows similar partnerships in the industry, such as Stellantis and Crédit Agricole's joint venture.
While the leasing sector is expanding, it faces criticism for not contributing significantly to decarbonisation efforts. A study by NGO Transport & Environment accused major European leasing companies of greenwashing, highlighting the need for greater transparency and action towards sustainability.
Renault's financial performance in the first quarter of 2024 showed a slight increase in turnover, mainly driven by high interest rates on its financial services. However, electric vehicle sales experienced a slowdown, accounting for 10.5% of sales for the Renault brand. The company expects new product launches in the second quarter to boost sales.
