Target Information
LLC "Leasing Company Eurotime" is a Belarusian subsidiary of the investment group "Insight". As of the end of the first half of 2024, Eurotime reported a leasing portfolio totaling $77.2 million, reflecting a substantial growth of 57% compared to the previous year. The new business generated by the company reached $23.9 million by June 30, 2024, an increase from $17.4 million at the end of the first half of 2023. During this period, Eurotime executed 778 new contracts.
Industry Overview in Belarus
The leasing industry in Belarus is witnessing dynamic growth, primarily driven by the increasing demand for vehicles and equipment. Particularly, the segment for leasing passenger cars is robust, with Eurotime indicating that 82% of its leasing portfolio consists of passenger vehicles, followed by cargo vehicles (8%), light commercial vehicles (4%), and equipment (1%).
According to Eurotime's data, Geely is currently the leading brand among vehicles leased, accounting for 11% of the total. Following Geely are the Russian brand Lada at 9%, Chinese BYD at 7%, while prominent European brands such as BMW and Volkswagen account for 6% and 5% respectively. Despite a growing share of Chinese vehicles in the market, European models continue to dominate in overall leasing volumes.
The market landscape indicates that while European brands still lead in the overall leasing portfolio, their share is gradually decreasing compared to the previous year, highlighting a shifting trend towards greater Chinese vehicle participation. For instance, in the first half of 2023, European-made vehicles constituted 32% of the leasing contracts facilitated by Eurotime, while Chinese vehicles accounted for 28%.
The light commercial vehicle sector shows slightly different dynamics, where European brands make up 63% of the leasing volume, with EAEU countries and China contributing equally at 19% each. Notably, Eurotime did not handle any Chinese light commercial vehicles in 2023, indicating a potential market gap. In the cargo vehicle segment, European trucks made up 62% of the leasing transactions in the first half of 2024, contrasting with Chinese contributions at 25%.
Rationale Behind the Deal The acquisition of an 80% stake in Eurotime by the investment group "Insight" in April 2024 is a strategic move aimed at bolstering market presence in the rapid…