By the end of this year, Serbia’s leasing industry is expected to achieve a record value of €1 billion in financed goods, with a significant portion allocated to the development of small and medium-sized enterprises (SMEs) and entrepreneurs, according to Ivan Jauković, president of the Association of Leasing Companies of Serbia (ALCS).
Speaking at the “Leasing and the Future of Mobility” conference held at the Serbian Chamber of Commerce, Jauković noted that the leasing industry has seen approximately 30% growth compared to the previous year, with a similar increase in the number of contracts. “This demonstrates that the leasing sector has significantly expanded, despite the complex geopolitical landscape,” he stated.
Jauković emphasized that around 70% of leasing company clients are SMEs, which primarily rely on leasing in the critical early stages of their businesses. He highlighted that SMEs view leasing as their most preferred financing option, a trend mirrored in Europe.
In Serbia, over 40% of leasing is directed toward financing passenger vehicles, while about 35% supports the purchase of trucks, buses and light delivery vehicles. Additionally, leasing contributes to the modernization of public transport, including new buses, electric delivery vehicles, and taxis.
“The current vehicle usage cycle has shifted, with users opting for shorter-term leases to avoid frequent breakdowns and service needs. This trend reflects a move from ownership to rental, as modern drivers prefer convenience without the burdens of vehicle maintenance,” Jauković explained.
He also noted a growing demand for environmentally friendly transport options, including hybrid and electric vehicles, driven by increased awareness, improved infrastructure, and greater availability in Serbia. “We are already witnessing a rise in new vehicles on the streets, many of which are hybrids or run on natural gas. Next year holds promise for urban electromobility,” he added.
Jauković mentioned that 20% of leasing in Serbia is allocated to equipment, primarily for the construction sector, while leasing is also utilized for IT and, to a lesser extent, medical equipment purchases. He believes leasing will maintain its competitiveness as interest rates on traditional loans are expected to decrease.
The representatives of the leasing industry also acknowledged the impact of digitalization on leasing practices. Jauković explained that decision-making and risk management processes have evolved to focus more on user experience. “Leasing has long been recognized for its speed and efficiency, and now, the signing of contracts can be completed in minutes, digitally,” he stated.
He anticipates that the industry will transition to paperless contracts within the next three to five years, with approvals potentially available online or in showrooms. “This aligns with our commitment to ESG principles and reducing paperwork,” he noted.
One in three new vehicles financed through leasing
Teodora Milenković, General Secretary of ALCS, pointed out that one in three new vehicles in Serbia is financed through leasing. “The unique aspect of leasing is that the financing instrument itself serves as collateral, making it highly suitable for the micro, small, and medium enterprise sector, which is critical to both the European and domestic economies. As of the third quarter of 2024, passenger vehicles account for 44% of leasing financing,” she stated.
According to ALCS data, the value of newly signed contracts in the first nine months of this year has increased by 30% compared to the same period in 2023. The most significant growth was observed in the commercial vehicle segment, which saw a nearly 47% increase, alongside a more than 22% rise in passenger vehicle financing.
The ALCS concluded that, given the current trends, the leasing industry is poised for continued growth in the upcoming business year.
Vladimir Arsenović, State Secretary in the Ministry of Economy of Serbia, emphasized the importance of leasing as a financing alternative for newly established SMEs and entrepreneurs. “Leasing allows companies to obtain environmentally friendly technologies and solutions, such as electric vehicles and energy-efficient machinery, without substantial upfront investments,” he said, underscoring its significance for resource-limited SMEs.
Arsenović also highlighted that “green leasing” supports environmental preservation while enhancing economic resilience. He noted the Ministry’s support program for small businesses, which has included leasing houses as partners since 2017. This initiative has facilitated investments in not only production equipment but also energy-efficient machinery. From 2017 to 2023, leasing houses accounted for 17% of the total requests under the program, securing around 19% of the grants awarded, with financial leasing provided exceeding 5.5 billion dinars.
