The term “car leasing is fairly new for the Indian audience. Although it is widely used by various businesses in India, leasing is an alien concept for common people. Now, if we scan the past when ICE vehicles were the only mainstream means of transport, leasing might not made sense in those times. But as we enter the era of electric vehicles, EV leasing will become the new normal in the Indian market.
In this article, we’ll see why EV leasing is the future and how the EV revolution will forever change the buying behaviour of Indian customers.
Benefits of EV leasing:
Leasing offers consumers an affordable and sustainable solution, allowing them to transition to electric vehicles without high initial costs and maintenance. Zecat has developed tailored leasing options that enable customers to lease vehicles on a monthly basis without actually owning them.
According to a recent survey by GT Bharat, 39% of participants said they would prefer leasing or a vehicle subscription as an alternative to purchasing a vehicle. This indicates a significant potential for the growth of the EV leasing market in India.
- Lower monthly Expense: Leasing an electric vehicle typically comes with lower monthly spending due to low running costs, making it more affordable for many people.
- Ability to upgrade: Leasing allows you to drive a newer model electric vehicle every few years, giving you access to the latest technology and features without needing a large upfront payment.
- Option to buy: At the end of the lease term, you can buy the electric vehicle if you decide to keep it. This gives you flexibility and the opportunity to own the vehicle if you choose to.
- Reduced maintenance costs: Since leased vehicles are typically under warranty during the lease term, you don’t have to worry about expensive repair costs. This can save you money on maintenance and repairs.
Access to incentives: Depending on your location, leasing an electric vehicle may make you eligible for state or federal incentives, such as tax credits or rebates, which can further reduce the overall cost of leasing.
Government Support for EV Leasing Companies:
The Indian government has taken several initiatives to promote EV adoption, including tax incentives, subsidies, and the FAME II scheme. + These initiatives have made EVs more affordable for consumers and businesses, driving the demand for EV leasing.
Moreover, the government’s support for EV leasing companies extends beyond financial incentives. By offering tax breaks to these companies, the government makes it easier for them to offer competitive leasing rates. Additionally, the government can invest in charging infrastructure, particularly in urban areas, to encourage EV adoption. According to a report by consulting firm RBSA Advisors, India will need approximately 400,000 charging stations to accommodate the two million EVs that could potentially be on its roads by 2026. A collaborative effort between the public and commercial sectors is necessary to meet this enormous demand.
Overcoming Challenges for EV Leasing in India:
Despite the growth potential, the EV leasing market in India faces several challenges. The high cost of EVs is a significant barrier to adoption, making it challenging for leasing companies to offer competitive rates. Additionally, the lack of charging infrastructure in the country limits the range of EVs and creates range anxiety among consumers.
To overcome these challenges, companies like 1C Charging are working towards building a robust and affordable EV charging infrastructure in India.
Additionally, the Indian government can play a crucial role by providing further incentives and investment in charging infrastructure. Tax breaks for EV leasing companies would enable them to offer more competitive rates. Furthermore, the government’s investment in charging infrastructure, particularly in urban areas, will encourage EV adoption. Public sector undertakings (PSUs) have already been active in supplying critical charging infrastructure.
EV leasing companies also have a role to play in overcoming these challenges. They can offer value-added services such as maintenance and charging solutions, increasing profitability. Moreover, these companies can invest in technology and innovation to develop more efficient and affordable EV leasing models, such as battery-swapping solutions.
The Promising Future of the EV Leasing Market in India
The future of the EV leasing market in India looks promising, with several growth opportunities and emerging trends. One such trend is the rise of micro-mobility solutions, including e-bikes and e-scooters, which offer affordable and convenient last-mile transportation. These solutions can complement EV leasing options and contribute to the overall growth of the EV market in India.
Another emerging trend is the adoption of renewable energy sources for charging infrastructure. Solar-powered charging stations, for instance, can further reduce the environmental impact of EVs and promote sustainable transportation. Integration of renewable energy sources with EV leasing can enhance the overall sustainability of the transportation ecosystem.
Technology and innovation will play a crucial role in driving the growth of the EV leasing market in India. Advancements in battery technology, charging solutions, and software platforms will enable more efficient and affordable EV leasing models, further accelerating the adoption of EVs in the country.
Conclusion
In conclusion, the EV leasing market in India has significant growth potential, driven by government incentives, environmental awareness, and the benefits of EV leasing. While the market faces challenges such as high costs and lack of charging infrastructure, there are potential solutions that the government and EV leasing companies can adopt to overcome these hurdles. The growth of the EV leasing market in India can contribute to sustainable transportation and economic growth, making it a promising market for policymakers and businesses alike.
