EV leasing is going to be the next big thing. Yeah, vehicle leasing didn’t impact that great in India with ICE vehicles, but the EV revolution will change this trend and “vehicle leasing” will come to the forefront of the automobile industry.
The major challenge with this method is that people are still unaware of the EV leasing concept. In India, people either make the entire upfront payment or own on finance, whereas EV leasing is one of the best and most cost-effective methods of owning an EV.
So, in this comprehensive article, we will know how to lease an EV in India and why leasing an electric vehicle is far more profitable than owning one.
India’s EV Growth Story
With the government’s push + demand for sustainability in the transport sector, the EV sector in India has experienced significant growth. Several companies, including start-ups, have entered the market, offering tailored EV solutions, allowing consumers to own a good EV with good features and specifications.
EVs are the future, and despite how hard it is to imagine, we’ll say goodbye to all the ICE vehicles in the future.
Benefits of EV Leasing:
Despite the growing popularity of EVs, their ‘high upfront costs’ remain a significant barrier to mass adoption, especially in the four-wheeler segment.
As Indians, we are hard-wired to own a vehicle either by paying the total upfront cost or getting a loan, which, to some extent, is okay for ICE vehicles because they have a high resale value. Whereas EVs are battery-operated, and their cost drops to a large area after a few years, hence you’re not getting a higher resale value for your EV. EV leasing addresses these concerns by offering a more affordable alternative.
- Cost Effective
- No hassle to resale
- Insurance included.
- Zero maintenance from your pocket
One of the primary advantages of EV leasing is the reduced cost for consumers. Individuals and companies can make a lower upfront payment and manage an easy-to-pocket monthly instalment by opting for a lease. This affordability factor makes EVs accessible to a broader range of consumers who may have previously been unable to purchase an electric car.
Another concern for prospective EV owners is the depreciation of the vehicle’s value over time. However, when an EV is leased, the lessee doesn’t have to worry about the vehicle’s resale value. Some original equipment manufacturers (OEMs) even include a service and maintenance package in their leasing agreements. At the same time, other rental firms take care of all maintenance and servicing throughout the lease term, eliminating additional costs for the lessee.
If it appreciates, buy it. If it depreciates, lease it.” – J.Paul Getty
The Rise of Electric Two and Three-Wheelers
Electric two and three-wheelers dominate India’s EV sales, with nearly 62% of the country’s EV sales in the first quarter of 2023 coming from electric two-wheelers. The electric three-wheeler market, particularly cargo vehicles and e-rickshaws, is crucial in electric last-mile connectivity. As sales in these segments continue to ramp up, leasing firms are offering profitable solutions for both commercial and private consumers, contributing to the overall growth of EV leasing in India.
Leasing is the best option, especially for commercial firms that operate with the bulk of vehicles.
The Financial Benefits of EV Leasing
When considering the financial aspects of EV ownership, leasing emerges as a more favourable option than purchasing an electric car outright. While EVs may have a higher upfront cost, leasing allows consumers to avoid the total initial investment.
This is particularly advantageous given the deterring battery life of EVs, as owning an EV for several years may result in little to no after-market value. By opting for a lease, individuals can enjoy the benefits of an EV without worrying about potential financial losses in the long run.
Conclusion
EV leasing provides an affordable and sustainable solution for consumers in India to transition to electric vehicles. It addresses the barriers of high upfront costs and concerns about maintenance expenses, making EVs more accessible to a broader range of consumers. With the government’s push for EV adoption and the increasing demand for decarbonisation, the EV leasing sector in India is poised for rapid growth. As more companies enter the market and offer tailored leasing solutions, the transition to EVs becomes a more viable and financially sound choice for individuals and businesses alike.
EV leasing benefits consumers and contributes to the overall goal of reducing carbon emissions and building a greener future. By promoting the adoption of electric vehicles through leasing, India can make significant strides in achieving its sustainability targets. So, if you’re considering switching to an EV, explore the leasing options available and enjoy the benefits of affordable and sustainable mobility.
Remember, EV leasing is not just a wise financial decision; it’s an investment in a cleaner and more sustainable future.
