EV sales are rising in India, but the upfront cost of electric vehicles is becoming the biggest limiter for this vehicle; unlike ICE vehicles, an average electric scooter costs you nearly ₹1 lakh. This is where leasing emerges as a viable and attractive alternative. Leasing not only gives you the freedom from paying you the high upfront cost, but you can enjoy various other perks like free maintenance free EV charging services, and much more.
Now, let’s see why you should lease an EV in India.
Why Should You Lease an EV in India?
- Lower upfront cost: Leasing eliminates the need for a large down payment, making EVs more accessible to a broader range of consumers. Especially in a price-sensitive market like India, leasing is the only saviour of the future of electric vehicles. Leasing an EV can reduce monthly expenses by up to 20% compared to purchasing one.
- Flexibility: You’ve got one life; why commit it to one vehicle? Lease an EV and change your electric ride every year. Leasing can give you the option to change your ride every 2 years.
- 0% maintenance costs: EV leases typically include comprehensive maintenance packages, covering all repair and service costs during the lease term. This can significantly reduce financial burden and provide peace of mind.
- Government Incentives: The Indian government offers several incentives to promote EV adoption, including lower GST rates, FAME-II subsidies, and exemption from road tax in some states. These benefits also extend to leased EVs, making them even more affordable.
- Futureproofing: EV technology is rapidly evolving, with new battery breakthroughs and charging infrastructure developments happening frequently. By leasing, you can stay ahead of the curve and enjoy the latest technological advancements without incurring the high cost of upgrades.
Growth of the EV Leasing Market in India:
India is moving towards leasing. The EV leasing market in India is still in its nascent stage but is experiencing rapid growth. A recent survey by GT Bharat revealed that 39% of respondents prefer leasing or a vehicle subscription model over traditional ownership. This indicates a significant shift in consumer preference towards flexible and affordable mobility options.
Factors driving the growth of EV leasing in India include:
- Increasing awareness about the benefits of EVs
- Growing government support and incentives
- Expanding the availability of leasing options from various providers
- Rising demand for flexible and affordable transportation solutions
EV Leasing Challenges and Future Prospects:
Despite its promising potential, the EV leasing market in India faces some challenges. These include:
- Lack of awareness and understanding of leasing options
- Limited availability of lease financing options from traditional lenders
- Concerns about battery degradation and residual value of EVs
- Uncertainty about the long-term stability of government policies
However, several initiatives are underway to address these challenges. The government is investing in awareness campaigns and developing policies to support the growth of the EV leasing market. Additionally, players like Zecat and other leasing companies offer innovative solutions, such as battery leasing and flexible lease terms, to make EV leasing more attractive to consumers.
Cost savings from driving an EV:
By driving an EV, you save on fuel and maintenance costs and get various tax benefits. Here’s a brief explanation of how much you can save on fuel by driving an EV.
- Daily Commute: 55km
- Electricity Cost: ₹10 per unit
- Petrol Cost: ₹100 per litre
- Duration: 2 Years (730 days)
Fuel Efficiency:
- Ola S1 Pro: 195 km/kWh (claimed)
- Activa 6G: 60 kmpl (claimed)
Calculations:
Ola S1 Pro:
- Daily Electricity Consumption: 55km / 195km/kWh = 0.282kWh
- Total Electricity Consumption: 0.282kWh/day * 730 days = 205.74kWh
- Total Electricity Cost: 205.74kWh * ₹10/kWh = ₹2,057.40
- Total Cost: ₹2,057.40 (electricity)
Activa 6G:
- Total Fuel Consumption: 79,800km / 60kmpl = 1,330 liters
- Total Fuel Cost: 1,330 liters * ₹100/liter = ₹133,000
Comparison:
| Feature | Ola S1 Pro | Activa 6G |
|---|---|---|
| Total Distance Covered | 79,800 km | 79,800 km |
| Total Fuel/Electricity Consumption | 205.74 kWh | 1,330 liters |
| Total Fuel/Electricity Cost | ₹2,057.40 | ₹133,000 |
| Total Cost | ₹2,057.40 | ₹133,000 |
In conclusion, leasing an EV offers a compelling alternative to traditional ownership, especially in the Indian context. As the EV leasing market continues to mature, we can expect to see more affordable lease options, greater consumer awareness, and increased adoption of EVs, paving the way for a greener and more sustainable future for India.
