Chinese automakers are increasingly adopting cross-border leasing strategies to sustain growth in global markets amid rising trade barriers. Data from the China Passenger Car Association show April exports reached 769,000 units, an 80.7% year-over-year increase, with cumulative exports for the first four months of 2026 at 3.127 million units, nearly half of which were new energy vehicles. However, traditional cash-on-delivery models are losing effectiveness due to high tariffs and strict local content requirements.
Cross-border leasing retains vehicle ownership in China while enabling overseas customers to access vehicles through periodic payments rather than large upfront purchases. This approach shifts the focus from a single sale to a service-oriented model. Financial leasing structures allow companies to benefit from domestic value-added tax rebates and improved cash flow. By converting high initial costs into manageable installments, automakers can stimulate demand in markets where automotive financing is underdeveloped. Long-term service contracts for maintenance and insurance further generate continuous revenue streams instead of one-time transactions.
The strategy is often described as “light asset, heavy operation.” It is “light” in that it minimizes investments in overseas factories and production facilities, but “heavy” in operational requirements such as local asset management, credit risk assessment, and vehicle recovery.
In December 2025, Huasheng, in partnership with an energy company and Dongfeng Motor, launched its first cross-border leasing deal in South Africa featuring the Dongfeng Nammi Box model. To mitigate risks, many automakers initially focus on business-to-business clients like ride-hailing fleet operators, whose credit profiles are more transparent and manageable than those of individual consumers.
Huasheng has expanded operations to Uzbekistan and South Africa and has announced Pakistan as its next key hub. The company collaborates with financial leasing institutions and local ecosystem partners to provide comprehensive asset management solutions. According to industry sources, more than 30 Chinese automakers and brands—including Dongfeng, Chery, GAC, and BAIC—have expressed interest in partnering on cross-border leasing as a sustainable approach to global expansion.
Source: CarNewsChina
