Expect automotive leasing in India to account for up to 8 pc of total sales in 5-8 yrs: ORIX
ORIX Corporation India Ltd expects automobile leasing market in India to account for 7-8 per cent of the overall vehicle sales in the next 5-7 years, up from about 2 per cent currently with more younger people joining the workforce, its Managing Director and CEO Vivek Wadhera. With good traction in its business, the company expects 30-35 per cent higher profit this fiscal year compared to the last year, Wadhera told PTI in an interaction.
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«If you compare the Indian market to the western market, the overall leasing market in India is 1-2 per cent of the total number of automobiles sold,» he said when asked how the automobile leasing market has been developing in the country.
In 2024, passenger vehicle sales in India stood at 43 lakh units as per industry estimates.
In the western market such as the US, or even Japan or China, the same percentage is 30-40 per cent, he added.
There many customers don't buy vehicles but «Indians still like to buy vehicles, and hence only 1-2 per cent of the total automobile sales that happens through leasing or subscription, he said, adding that ORIX has tied up with OEMs such as Maruti Suzuki and Kia for subscriptions but it is still not a very large business.
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