Information on the target
Eurotime Leasing Company LLC is a prominent player in the Belarusian leasing market, having established itself as a subsidiary of the Insight Investment Group. By the end of the first half of 2024, the company reported a leasing portfolio valued at $77.2 million, reflecting a remarkable 57% increase compared to the same period in the previous year. The company has demonstrated robust growth, securing 778 new contracts in the first half of 2024, with a new business volume of $23.9 million, up from $17.4 million in H1 2023.
Eurotime specializes in leasing services for passenger cars, light commercial vehicles, and trucks. The company has achieved significant recognition in the industry, receiving an AA rating for business reputation from BIK Ratings in July 2024, which underscores its credibility and reliability in the market. The composition of its leasing portfolio reveals a strong focus on passenger cars, which account for 82% of its total leases.
Industry overview in the target’s specific country
The leasing industry in Belarus has been experiencing dynamic shifts, particularly with the increasing influence of Chinese automotive brands. While European brands have historically dominated the market, their share is gradually declining. In H1 2023, European passenger cars financed by Eurotime represented 32% of leases, while Chinese vehicles accounted for 28%. This trend indicates a growing acceptance and demand for Chinese brands among Belarusian consumers.
In the light commercial vehicle (LCV) sector, European manufacturers still hold a significant market share of 63%. However, both EEU countries and China are gaining ground, each capturing 19% of the market. Notably, Eurotime did not supply any Chinese-manufactured LCVs in 2023, highlighting a potential area for growth as the market evolves.
The truck leasing segment also reflects changing dynamics, with European-manufactured trucks comprising 62% of Eurotime's total truck deliveries in H1 2024. Chinese trucks accounted for 25%, while those from EEU countries made up 9%. This diversification in the truck segment indicates a shift in consumer preferences and the competitive landscape of the leasing market in Belarus.
The rationale behind the deal The acquisition of an 80% stake in Eurotime Leasing Company by Insight Investment Group in April 2024 is a strategic move aimed at capitalizing on the growing leasing market in Bel…