The carmaker agreed with investor PAG Asia Capital to acquire 100% of the shares in Herald Leasing for an undisclosed amount.

BMW said it was “responding to the increasing importance of the emerging leasing business in the world’s largest vehicle market and laying the foundation for further growth”.

“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.”

Herald Leasing is one of the largest leasing providers in China. The company, which was founded in 2009, employs around 250 people and reported revenues of RMB 208 million for the 2014 financial year. Herald Leasing is already present in 58 Chinese cities and offers leasing at all these locations