The India vehicle leasing market was valued at USD 48.22 Billion in 2024 and is forecast to reach USD 88.0 Billion by 2033, growing at a CAGR of 6.20% during 2025-2033. The market expansion is driven by urbanization, evolving consumer preferences, and demand for cost-effective flexible mobility. Corporate fleets and tech-savvy users adopting leasing models, along with government support for electric vehicles, are key growth factors.The report presents a thorough review featuring the India Vehicle Leasing Market Research Report, share, trends, and research of the industry.

STUDY ASSUMPTION YEARS

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

INDIA VEHICLE LEASING MARKET KEY TAKEAWAYS

• Current Market Size: USD 48.22 Billion in 2024
• CAGR: 6.20% (2025-2033)
• Forecast Period: 2025-2033
• The market growth is propelled by demand for low-cost, flexible mobility solutions among urban professionals and enterprises.
• Corporate fleets increasingly prefer leasing to avoid depreciation risk and reduce administrative burdens.
• Subscription-based and operating lease models offering maintenance, insurance, and roadside assistance are expanding.
• Digital leasing platforms and technological innovations simplify leasing processes, enhancing market transparency.
• The total cost of ownership awareness encourages businesses to prefer leasing for financial and operational efficiency.

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MARKET TRENDS

The growing popularity of SUVs is reshaping the vehicle leasing market in India. SUVs accounted for roughly 55% of total passenger vehicle sales in 2024, up from below 50% in 2023 as per SIAM. Their spacious interiors and higher ground clearance appeal to families and businesses. Leasing packages tailored for SUVs with affordable monthly plans without ownership commitments boost demand, with electric and hybrid SUVs further supporting adoption.

Vehicle leasing is becoming integral to India's Mobility-as-a-Service (MaaS) ecosystem, supporting ride-hailing, car sharing, and subscription models. Leasing offers fleet operators capital efficiency and access to newer vehicle models, facilitating adaptation to dynamic demand and regulatory environments. The electric mobility trend enhances leasing appeal by offsetting high initial EV costs.

Consumers increasingly prefer flexibility and cost predictability, favoring leasing over ownership. Leasing packages commonly include insurance, maintenance, roadside assistance, and fixed tenures. This appeals to salaried professionals, gig workers, and younger demographics seeking stable monthly expenses and access to the latest vehicles. The trend aligns with sustainability goals through frequent vehicle upgrades.

MARKET GROWTH FACTORS

Urbanization and expanding corporate fleets are vital to the market growth. Leasing helps businesses lower capital expenditures while maintaining fuel-efficient, updated fleets. Increasing mobility needs and operational efficiency focus promote leasing across sectors. Government policies encouraging electric vehicles and technology advancements further fuel market expansion.

A notable driver is the growing awareness of total cost of ownership (TCO), influencing budgeting and asset utilization strategies. Leasing spreads costs over time, easing cash flow challenges and enhancing financial management for firms. Service packages bundled with leases mitigate unexpected expenses and optimize vehicle uptime, making leasing attractive.

Technological innovations and digital platforms boost leasing market growth by simplifying and enhancing leasing transparency. IoT integrations, telematics, and app-based services improve user experience and operational efficiency. The convergence of technology and sustainable transport initiatives creates favorable conditions for leasing adoption in India's evolving automotive landscape.

MARKET SEGMENTATION

Analysis by Type:

• Passenger Cars: These constitute a major part of the market, driven by urban professionals, small businesses, and families seeking access to premium models with flexible leasing durations and cost benefits.
• Commercial Vehicles: Leased by logistics firms, fleet operators, and corporate clients to optimize transport needs without heavy capital investment. Benefits include fixed maintenance, tax advantages, and fleet upgrade options suitable for goods delivery, employee transport, and service operations.

Analysis by Mode of Booking:

• Online: Rapidly growing with rising digital adoption, online leasing platforms offer transparency, easy comparisons, paperless processing, and real-time approvals.
• Offline: Remains significant in tier-2 and tier-3 cities relying on trust and personalized consultation via physical dealership visits for paperwork, test rides, and negotiation.

Regional Types Covered:

• North India
• South India
• East India
• West India

REGIONAL INSIGHTS

North India is the dominant region in the vehicle leasing market, buoyed by high urbanization, business growth, and metro infrastructure development, particularly in the National Capital Region. South India leads in technology adoption and structured fleet management with significant demand from IT centers and young professionals. East India has steady growth potential supported by infrastructure and urbanization. West India exhibits strong leasing activity driven by major economic centers and rising disposable incomes.

RECENT DEVELOPMENTS & NEWS

• May 2025: Tata Motors partnered with Vertelo to offer customized leasing for electric commercial vehicles nationwide, supported by USD 200 Million from the Green Climate Fund.
• March 2025: Rilox EV launched Rilox E-Mobility leasing arm aiming for 25,000 EV leases in three years, integrating IoT fleet management and battery swap partnerships.
• January 2025: MoEVing acquired Euler Motors’ EVonGO, becoming India's largest commercial EV fleet operator, expanding its fleet by 30%.
• December 2024: BluSmart's Assure asset-leasing program surpassed INR 100 Crore financing in a year, backed by green finance partners for EV fleet expansion.
• August 2024: Kia India introduced 'Kia Subscribe' with ALD Automotive, offering 12–36-month flexible leases in 14 cities inclusive of maintenance and insurance.

KEY PLAYERS

• Tata Motors
• Vertelo
• Rilox EV
• Rilox E-Mobility
• MoEVing
• Euler Motors
• BluSmart
• Kia India
• ALD Automotive

Customization Note:

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