Green fleets: Why more companies are opting for EV leasing over traditional ownership
This is a particularly notable trend in India. Currently valued at about USD 170 million, the EV leasing market is expected to develop at an astounding compound annual growth rate (CAGR) of 73%, reaching USD 4–5 billion by 2030. The increasing popularity of EVs and the growing acceptance of leasing as a wise substitute for ownership are both factors contributing to this development. Whether it is last-mile delivery companies upgrading their fleets or enterprises looking to optimise operational costs, EV leasing offers compelling advantages.
Managing capital and operational costs
EV leasing addresses one of the most significant challenges businesses face: high upfront capital expenditure. Purchasing EVs typically requires a substantial down payment, ranging from 10–25% of the vehicle's cost. Leasing, in contrast, demands only a security deposit equivalent to 3–6 months of lease payments, enabling businesses to scale their fleets with minimal initial investment. This approach not only preserves cash flow but also provides predictable monthly expenses, simplifying financial planning.
Additionally, the total cost of ownership (TCO) for EVs is approximately 30% lower than that of internal combustion engine (ICE) vehicles when factoring in purchase costs, charging expenses, and reduced maintenance. EVs also deliver significant fuel savings, with charging costs being upto 40% lower charging compared to traditional fuels like CNG. These savings are particularly impactful for sectors like logistics, passenger transport,
