India Vehicle Leasing Market

India Vehicle Leasing Market Overview:

The India vehicle leasing market size reached USD 48.22 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 88.00 Billion by ​2033​, exhibiting a growth rate (CAGR) of 6.20% during ​2025-2033​. The India vehicle leasing market share is expanding, driven by rising preferences for leasing executive or fleet vehicles to lower capital expenditure and avoid depreciation concerns, along with the increasing implementation of government initiatives that promote smart mobility and sustainable transportation.

India Vehicle Leasing Market Trends:

Growing Demand for Sport Utility Vehicles (SUVs)

The rising demand for SUVs is impelling the India vehicle leasing market growth. According to the Society of Indian Automobile Manufacturers (SIAM), the SUV's portion of the yearly passenger vehicles (PV) sales volume in India was approximately 55% in 2024. It was under 50% in 2023. SUVs provide enhanced road presence, increased ground clearance, and roomy interiors, which makes them a favored option for families, professionals, and corporate fleets. Leasing appears more appealing than buying due to its lower purchase price and maintenance expenses. It enables people to experience the advantages of an SUV without the financial strain of ownership, providing reduced monthly payments and adaptable terms. The increasing popularity of electric and hybrid SUVs also promotes leasing, allowing users to transition for newer models featuring advancements in technology. Automakers and leasing firms are responding by offering customized leasing options for SUVs, enhancing accessibility for a broader audience. As urban expansion accelerates and more individuals emphasize comfort and technology in their vehicles, SUV leasing keeps gaining traction.

Expansion of Mobility-as-a-Service (MaaS)

The expansion of Mobility-as-a-Service (MaaS) is offering a favorable India vehicle leasing market outlook. With the growing urbanization, traffic congestion, and changing user preferences, more people are opting for shared mobility options like ride-hailing, car rentals, and subscription-based services instead of traditional vehicle ownership. Leasing companies play a key role in providing vehicles to fleet operators, ride-sharing platforms, and corporate mobility services, helping them to scale their operations without heavy capital investments. Businesses and mobility providers prefer leasing over purchasing as it reduces upfront costs, lowers maintenance expenses, and enables easy fleet upgrades. The rise of electric vehicles (EVs) in India’s MaaS sector further boosts leasing, as it assists companies in avoiding high initial costs and concerns about battery depreciation. Government initiatives promoting smart mobility, sustainable transportation, and electric mobility adoption are also encouraging leasing companies to broaden their offerings. As Indian cities employ digital platforms for seamless mobility, vehicle leasing continues to grow as an essential part of the MaaS ecosystem, making transportation more accessible, affordable, and reliable. According to the IMARC Group, the India MaaS market is set to reach USD 1,644 Million by 2033, showing a growth rate (CAGR) of 27.30% during 2025-2033.

India Vehicle Leasing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for ​2025-2033​. Our report has categorized the market based on type and mode of booking.

Type Insights:

• Passenger Cars
• Commercial Vehicles

The report has provided a detailed breakup and analysis of the market based on the types. This includes passenger cars and commercial vehicles.

Mode of Booking Insights:

• Online
• Offline

A detailed breakup and analysis of the market based on the mode of bookings have also been provided in the report. This includes online and offline.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Vehicle Leasing Market News:

• In August 2024, Kia India, a well-known vehicle manufacturer, released a new flexible ownership plan called ‘Kia Subscribe’ and signed a Memorandum of Understanding (MoU) with ALD Automotive Pvt Ltd. The goal of this alliance was to broaden the company's leasing and subscription offerings to 14 prominent cities throughout India, including Jaipur, Delhi, Ahmedabad, Indore, Bangalore, Chennai, Noida, Hyderabad, Kolkata, Gurgaon, Ghaziabad, Faridabad, Mumbai, and Pune. The program provided short-term vehicle leases spanning 12 to 36 months, designed for those who enjoy flexibility without long-term obligations.
• In February 2024, ALD Automotive teamed up with LeasePlan to unveil Ayvens, their fresh worldwide mobility brand in India, representing a notable achievement in their strategic development agenda that began in September 2023. Boasting a total of 44,000 vehicles and operating in more than 280 locations nationwide, Ayvens stood out as India's premier vehicle leasing and fleet management firm. Both companies were prepared to pave the path for the widespread embrace of sustainable mobility, leveraging their scale, reach, service proficiency, and dedication to innovations.

India Vehicle Leasing Market Report Coverage:

Key Questions Answered in This Report:

• How has the India vehicle leasing market performed so far and how will it perform in the coming years?
• What is the breakup of the India vehicle leasing market on the basis of type?
• What is the breakup of the India vehicle leasing market on the basis of mode of booking?
• What are the various stages in the value chain of the India vehicle leasing market? 
• What are the key driving factors and challenges in the India vehicle leasing market?
• What is the structure of the India vehicle leasing market and who are the key players?
• What is the degree of competition in the India vehicle leasing market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India vehicle leasing market from 2019-2033​.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India vehicle leasing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India vehicle leasing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.