Electric vehicles have steadily moved from curiosity to consideration, with majority early concerns around Charging, Range, and Reliability largely addressed by OEMs. Vehicle Sales have been on the rise, month-on-month, driven primarily by Metros and Tier-1 cities.
At the same time, an increasing number of urban consumers are warming up to the idea of choosing EV as their next car.
The appeal is clear: lower running costs per kilometer, zero tailpipe emissions, and the satisfaction of making a responsible, environmentally conscious choice
That leaves just one big question: should you lease an EV or buy one?
Both options offer distinct advantages. In this blog, we’ll try to decode the key aspects of EV leasing versus EV buying for Indian drivers, exploring the financial, practical, and lifestyle factors involved.
Whether you’re considering an electric car lease or investing in full ownership through traditional financing / car loans from Banks and NBFCs., understanding these options could help you make a confident, future-ready decision.
Understanding EV Leasing: How does EV leasing work in India
Leasing an EV means using the vehicle for a fixed period, usually between two to five years, in exchange for a monthly fee. At the end of the term, you can return the vehicle, renew the lease, or, in some cases, buy the car at a residual value.
In India, EV leasing is steadily gaining acceptance beyond corporate fleets and into personal mobility. Several Financial Institutions now offer flexible lease models with distinct inclusions, tenure and downpayment options with add-ons like insurance, maintenance, and servicing often bundled into a single predictable monthly payment.
This ease of use is especially valuable in a category like EVs, where technology is rapidly evolving and resale values are still maturing.
Broadly, EV leasing models can be categorized into:
Operating lease, where the lessor retains ownership and the lessee pays for usage.
Finance lease, which is closer to hire purchase, with an option to own at the end.
Let’s look at the pros and cons of leasing electric vehicles in India.
EV Leasing Benefits
Lower Upfront Costs
Leasing significantly lowers the barrier to entry. Most leasing models either waive-off the down payment or keep it minimal as compared to conventional vehicle financing, making it easier for customers or drivers to access an EV without a large one-time expense.
For many first-time EV users or urban professionals, this reduced initial outlay is a strong motivator to choose leasing over traditional buying.
Predictable Monthly Expenses
A standout advantage of EV leasing is cost predictability. Monthly lease payments are fixed and often include bundled services like insurance, routine maintenance, and roadside assistance.
This not only helps in terms of budgeting or financial planning but also reduces the anxiety that many first-time EV buyers have around unanticipated repair costs or battery degradation over time.
Flexibility to Upgrade
Leasing also offers a way to stay abreast with the fast-moving EV landscape. With EV technology fast evolving, from higher battery Ranges and Charging Times to smarter Infotainment, leasing gives users the option to switch models every few years without worrying about resale value.
Whether it’s a facelift of the same vehicle model or an entirely different generation, leasing makes it easier to stay up to date.
Minimal Long-Term Risk
And then there’s simplicity. For city dwellers or working professionals, leasing eliminates the administrative load of managing registrations, insurance renewals, or resale negotiations.
It makes the experience of driving an electric vehicle hassle-free, even if you’re not yet ready to make a long-term commitment.
Battery life, Resale value, and future market demand are still evolving areas for EVs in India. Leasing shields you from these unknowns. Since you’re not the long-term owner, concerns about depreciation or battery degradation fall on the leasing provider, not on you.
In Closing: EV leasing vs EV buying
Both leasing and buying move you in the same direction, towards a quieter, cleaner, lower-emission future. But the road you choose will shape your experience of getting there.
Leasing is for those who prefer lightness, fewer strings attached, fewer risks and fewer responsibilities. It’s mobility on demand, with boundaries that suit short- to mid-term needs. Buying is for those who prefer depth, to commit, to own, to settle into the rhythm of a vehicle over time. It asks for more upfront but pays off in long-term value and autonomy.
There’s no universal right answer. Only the one that fits where you are, and how you move through the world. And whichever route you take, you’re helping move India towards a cleaner, smarter, and more sustainable tomorrow.
So, consider your patterns. Weigh your plans. And whether you choose to lease or buy, take that step. Because every EV on the road is part of a bigger shift, and it starts with the decision in front of you.
In the corporate ecosystem of 2025, sustainability is more than a buzzword. It is an imperative for businesses. As climate concerns rise across the globe, brands are increasingly becoming conscious of their carbon footprint. In fact, not just MNCs, but even Indian companies have also started setting ESG mandates and carbon emission reduction targets.
As State and Central Governments in India continue pushing for electrification, laying out a clear roadmap with segment-wise targets to be achieved by 2030, mid-to-large scale organizations are rethinking their logistics as well as transportation strategy, in terms of goods as well as people.
Being the fourth largest economy, and one of the fastest in terms of growth, India is witnessing a year-on-year surge in both blue and white collar workforce, across booming sectors like FMCG, Retail, eCommerce and ITeS.
These employees need to commute to and from the office via cars, buses, and other modes of transport. And the sheer impact of their commute on the environment adds up to reach damaging levels. And hence, the push for zero-emission vehicles or EVs that could help address the menace of not just vehicular pollution, but also bring down the transportation costs substantially due their positive TCO. Traditionally, the high upfront cost of electric vehicles has been the biggest showstopper for companies looking to electrify their fleets. But today, thanks to new-age financing models like EV Leasing, more and more businesses are embracing the shift from ICE to Electric fleets for their Employee Transportation Services (ETS).
What is EV Leasing for Employees?
EV leasing for employees is a structured program where companies provide electric vehicles to their employees on a lease model instead of an outright purchase, either for daily commute or personal use.
This model is enabled through trusted and certified EV leasing companies like ALT Mobility, who not only help companies enhance workplace mobility but also assist them in positioning themselves as environmentally responsible entities.
The model can be further classified into two distinct formats:
Corporate Commute Leasing: Companies lease a fleet of electric cars and buses that are used for employee transportation to and from the office.
Personal Use Leasing (Company Scheme): In this format, employees are given the option to lease electric vehicles under available company-facilitated plans. This format also comes with integrated maintenance packages, subsidized Lease Rentals, and long-term tax savings.
For companies looking to lower their carbon footprint while also offering modern employee benefits in keeping up with the times, this comes as the perfect opportunity.
EV Leasing for Employee Commutes: Much-needed Transition
Given India’s pace of economic growth and the sheer size of its sectoral workforce, daily commuting for employees is understandably a big decision. Shuttles, cabs, and staff buses that run on fossil fuels are not only expensive but also environmentally unsustainable.
Hence, shifting to electric mobility can dramatically reduce both carbon emissions and operational costs for companies.
Personal EV Leasing Schemes for Employees
Apart from electric shuttles, buses and cabs for workplace commute, companies are also offering green mobility benefits to employees. And they’re doing this through personal EV leasing schemes, which offer employees the opportunity to lease Electric 2-wheelers and electric cars for personal use (at either subsidized or ‘zero’ upfront cost).
Why Does Personal EV Leasing Make Sense?
Affordability or Ease of Access: Employees do not have to make high upfront payments, which is often the case when one goes for a conventional vehicle loan from traditional Banks or NBFCs.
Offers Tax Savings: EV leasing under company scheme can be a great Tax saving opportunity for employees. Although there are multiple factors involved here, employees typically can claim tiered tax exemptions against monthly lease rental, fuel costs, maintenance or service expenses and even vehicle insurance.
Flexible Options: Based on factors like job level or seniority, tenure at the company, vehicle eligibility etc., EV leasing plans can be customized to suit individual needs.
Employee Incentivisation: EV leasing can also work well as an employee perk or as a replacement for bonuses or car allowances.
With the recent spike in the willingness to lead a sustainable lifestyle, EVs are an attractive option for those looking for environmentally friendly commuting options.
And when offered by the employer, it becomes an even more enticing option as employees reduce their fuel expenses and tax liabilities, all this while being responsible by choosing zero-emission vehicles for their daily commute.
What Role do EV Leasing Companies Play?
Implementing such a shift in your company’s operations requires niche expertise, and that’s where EV Leasing Companies like ALT Mobility come in. But how to pick the perfect EV leasing partner for your company? Here’s how.
What makes a good EV Leasing Partner?
They offer a wide range of vehicles and brands to choose from – electric scooters, cars as well as Buses.
They offer flexibility in terms of leasing tenure, maintenance plans, add-ons, and security deposits.
Their plans operate on the full-service model, covering things like vehicle maintenance, battery health, insurance, part replacements, etc.
They offer modern smart tech-integration features such as sustainability reporting, real-time vehicle tracking, usage data, and driver analytics etc.
EV Rentals for Temporary Needs
Not all mobility needs are permanent. From new joinee transportation to temporary project-based deployments or inter-city travel, EV rentals for employees can serve short-term requirements without long-term commitment.
These rental EVs can be booked for days, weeks, or months, just like a subscription. Employees working on client sites, off-site manufacturing units, or project-based contracts can benefit from this flexible access.
It also allows companies to test adoption rates or check commercial viability before committing to full-fledged lease schemes.
What about Charging Integration and Infrastructure Support?
Before investing in EV leasing schemes for employees, companies have a major concern. It is about infrastructure support, particularly charging integration. So, how does an EV leasing partner address this issue? By offering:
Charging points at setups as per requirement, be it in the office, corporate sites, or employee residences.
Tie-ups with leading CPOs (Charging Point Operators), which offer access to a robust charging infrastructure at all times.
Home charger installation for personal leasing for employees.
EV roaming partnerships that allow access to public charging networks or even preferential access and pricing.
Sustainability in Focus
In today’s corporate ecosystem, offering electric mobility solutions could be a strategic business decision. Companies that are opting for EV leasing for employee transportation are not just cutting costs or reducing carbon emissions, but they’re positioning themselves as progressive and responsible corporate citizens.
In short, opting for EV leasing solutions can help your company in:
Aligning with global sustainability goals like the UNSDG-13, i.e., Climate Action.
Demonstrating a clear and visible commitment to green and sustainability practices.
Reducing employee transportation costs while also providing employees with access to the latest EV tech and tax-saving options.
Leverage incentives or subsidies that are offered by the various States as well as the Central government for promoting clean mobility.
Drive Meaningful Change with ALT Mobility
For forward-thinking companies, EV leasing for employee transportation is a tangible and a logical step forward. With tailored EV leasing solutions, robust service support, and a strong focus on data-driven efficiency, ALT Mobility is here to make this transition simple, seamless, and impactful.
So, if you’re a business leader looking to champion sustainable practices, today’s the time to drive change with electric vehicle leasing. Visit the ALT Mobility website today.
In the fast-evolving world of commerce, convenience is king, and delivery timelines are its sharpest weapon. From e-commerce to food tech, India’s consumption story is increasingly being written in the language of doorstep logistics. But behind every swift delivery is a complex chain struggling with one central challenge: how to make the last mile fast, efficient and cost-effective.
As cities grapple with rising emissions and logistics companies face cost pressures, the search for efficient, scalable mobility solutions is intensifying. Electric Vehicles (EVs) are rapidly gaining traction as the preferred choice for last-mile deliveries and intra-city logistics owing to their cost and environmental benefits. However, widespread adoption still faces key barriers, such as range anxiety, upfront costs, charging infrastructure, maintenance and reliability-related apprehensions.
In view of the above, EV fleet leasing is emerging as a game-changing model, one that unlocks the benefits of electric mobility without the burden of ownership. For India’s last-mile delivery sector, it isn’t just a cost play or a green commitment. It’s a structural shift that could redefine how goods move within the city.
The Rise of Electric Vehicles in India’s Logistics’ Sector
India’s commitment to transitioning towards sustainable mobility is well underway. EV momentum in the country is powered by strong policy backing. The FAME initiatives have focused on demand incentives and public charging infrastructure. Complementing this is the Production Linked Incentive (PLI) scheme, which is encouraging domestic manufacturing of EV components and advanced batteries. Together with state-level EV policies, these efforts are laying the groundwork for a robust electric mobility ecosystem.
Within this favorable environment for electric vehicles in India, the logistics and delivery sector stands out as the obvious choice for electrification. Urban routes are typically short-distance, predictable, and repetitive, making them a natural fit for electric two-wheelers, three-wheelers, and light commercial EVs. Intra-city delivery networks, especially, are emerging as the ideal launchpad for EV adoption, with limited daily range requirements and predictable routing minimizing concerns around range anxiety.
Moreover, fleet electrification can directly reduce operational costs while supporting India’s decarbonization goals. Inter-city electrification, involving larger commercial vehicles, is also advancing steadily as advancements in battery technology and charging infrastructure along the highways continue to reduce cost and performance barriers.
EV adoption in the logistics sector is no longer just about being efficient; it’s about being compliant, future-ready, and environmentally responsible.
The Hidden Costs of Traditional Vehicle Ownership
While electric vehicles offer clear long-term savings and environmental advantages, maximizing their value requires strategic asset management. For many small and mid-sized logistics operators, traditional ownership models often fall short in this regard, not because EVs are difficult to manage, but because optimizing uptime, performance, and cost-efficiency needs dedicated focus and resources.
This is where new-age EV leasing models step in. Designed around the needs of high-utilization fleets, these models don’t just simplify access; they also ensure smoother, smarter operations. By bundling services like maintenance, insurance, and real-time telematics into a single plan, leasing companies help businesses manage Total Cost of Ownership (TCO) more effectively. Integrated asset monitoring, predictive maintenance alerts, and battery health tracking all contribute to keeping vehicles healthy, on the road longer, minimizing breakdowns, and ensuring higher uptime.
In essence, EV leasing today is not just about affordability; it’s about ensuring operational continuity, better asset performance, and hassle-free scaling. It transforms ownership into a managed service, tailored for the fast-paced demands of last-mile logistics.
EV Fleet Leasing: A Smarter Model for EV Adoption
Simply put, EV leasing eliminates the need for large upfront investments and long-term asset commitments. In a leasing model, businesses gain access to a ready-to-deploy electric vehicle fleet for a fixed monthly fee, often bundled with maintenance, insurance, telematics, and more.
Key benefits of EV leasing include:
No CapEx: Leasing eliminates the need for large upfront investments in purchasing EVs. For many logistics businesses, especially small and mid-sized operators, this makes electric mobility immediately accessible without disrupting cash flow. By staying asset-light, companies can deploy capital toward operations, tech, or expansion rather than locking it into depreciating assets.
Flexibility: Operational agility is a major win with leasing. Fleet sizes can be scaled up or down in response to seasonal demand, geographic expansion, or evolving delivery volumes, without the baggage of ownership. Shorter lease tenures and modular options also allow businesses to pilot EV adoption before full-scale integration, reducing decision risk.
Predictable Costs: Most leasing providers offer integrated lease plans that bundle insurance, regular servicing, maintenance, and roadside assistance (RSA) into a single monthly rental. This provides cost visibility, reduces unexpected expenses, and minimizes downtime, making fleet operations smoother and financially viable.
Advanced Technology Integration for Vehicle Monitoring: Leasing partners often provide EVs equipped with advanced telematics for real-time tracking, route optimization, and battery analytics. A major advantage is 24×7 vehicle health monitoring, which enables predictive maintenance alerts, helping avoid breakdowns, ensuring better asset utilization, and maintaining higher uptime, eventually resulting in higher delivery efficiency.
Battery Risk Offloading: The battery is the most expensive and sensitive component of an EV. With leasing, the responsibility for battery degradation and replacement lies with the lessor, not the fleet owner or the logistics company. This mitigates long-term risk and removes a significant barrier to EV adoption, offering peace of mind and better financial predictability.
By making EVs more accessible and risk-free, leasing models are driving higher adoption among logistics providers and delivery platforms.
Why Leasing is Tailor-Made for Last-Mile Delivery
Last-mile delivery is characterized by high utilization, short-range urban trips, and demand spikes. Leasing EVs is well-suited to this dynamic.
Fleet leasing ensures that vehicles are readily available, well-maintained, and replaceable without disruption to delivery schedules. Leasing companies also provide operational support like emergency roadside assistance, predictive and preventive servicing, and software upgrades, freeing logistics teams from typical fleet management challenges.
Furthermore, Electric vehicles used for last-mile delivery can benefit from modular leasing options— weekly or monthly lease rentals, especially suited for gig workers and hyperlocal delivery partners. This flexibility aligns with the nature of India’s rapidly growing gig economy and supports broader workforce participation.
Economic & Operational Benefits: The Numbers Make Sense
While the upfront price of an EV may be higher than that of an ICE (Internal Combustion Engine) vehicle, its total cost of ownership (TCO) is significantly lower over time. With EV Leasing, this cost advantage becomes even more pronounced.
A lease model helps logistics companies:
Reduce operational costs by up to 30% over a 3–5 year horizon
Avoid long-term lock-ins and upgrade to latest vehicle models
Meet sustainability targets without capital strain
Improve delivery efficiency through professionally managed EV fleets
Importantly, leasing offers access to data and insights. Telematics and fleet dashboards allow logistics teams to optimize delivery routes, reduce idle time, and manage driver performance, resulting in much higher supply chain efficiencies.
Building India’s EV Leasing Ecosystem
The success of EV fleet leasing depends on a robust supporting ecosystem, and India is rapidly developing one.
Startups like Alt Mobility are playing a pivotal role in enabling EV-as-a-service. By acting as an orchestrator across ecosystem players – vehicle OEMs, NBFCs, Banks, charging infrastructure providers, and logistics operators, Alt Mobility offers end-to-end solutions tailored for commercial use cases.
These leasing platforms offer:
Access to a wide range of electric two-wheelers, three-wheelers, and light commercial EVs as well as electric buses.
Customized lease packages with maintenance, servicing, insurance, and RSA. Some players also offer battery health risk coverage and fitness options.
Partnerships with last-mile delivery players across various sectors, including food and dairy, e-commerce, grocery, retail, FMCG, and FMCD segments.
Integrated charging and priority SLAs.
As state governments continue to push for zero-emission delivery zones and green logistics hubs, such platforms will be instrumental in scaling EV adoption in the country.
Overcoming the Hurdles: What Still Needs Attention
While the future of electric vehicle fleet leasing looks bright, there are a few structural challenges that need to be addressed:
Charging Infrastructure: Urban India still faces gaps in accessible charging and battery swap stations, especially in Tier 2 cities.
Standardization: EV residual value assessment and secondary markets for leased EVs are still evolving.
Financing Bottlenecks: Lending institutions need to develop stronger frameworks for lease-backed EV financing.
Awareness: Many small fleet operators and gig workers are still unaware of the benefits and flexibility leasing offers.
Addressing these gaps will require continued collaboration between policymakers, financiers, fleet operators, and technology providers.
The Road Ahead: From Early Adoption to Mainstream Transformation
India’s last-mile delivery ecosystem is set to expand exponentially in the next decade. To meet this demand sustainably, electrification is non-negotiable, and leasing is the fastest way to get there.
EV fleet leasing unlocks access, reduces friction, and makes electric vehicles in India viable for businesses of all sizes. It allows logistics startups and enterprise players alike to decarbonize operations without compromising growth or profitability.
As business models shift from ownership to access, and policies support circular mobility solutions, EV leasing will no longer be just an alternative — it will be the default model for clean, efficient, last-mile logistics.
As the world shifts toward sustainable solutions to combat climate change, India stands at a critical juncture, where emissions are rising year-on-year, environmental pollution is impacting air quality leading to serious health issues amongst citizens, and EVs, while gaining traction, still account for a small percentage of total vehicle sales in the country.
First things first – EVs are not just good for the environment; they have the power to transform the logistics and transportation industry. They help reduce vehicular emissions, thereby helping significantly improve the air quality index, eventually leading to better public health. For fleets, EVs mean lower cost of operation (TCO) and higher efficiencies. On a larger scale, they also contribute towards reducing the country’s fuel bill as well as reliance on fossil fuels.
For logistics companies, fleet operators, businesses and even individual drivers eyeing sustainability, the rise of electric vehicle leasing companies has been a game-changer.
The Growing Demand for EVs in India
India has set ambitious goals for its EV transition, aiming for 30% of all vehicles on-road to be electric by 2030. The logistics sector, which heavily relies on commercial vehicles including two-wheelers, three wheelers, small commercial vehicles, light commercial vehicles as well as heavy commercial vehicles, is key to making this shift happen. However, the high asset cost of EVs remains a key barrier to widespread adoption. This is where electric vehicle leasing companies step in to provide affordable, scalable, and hassle-free solutions.
How EV Leasing is Enabling EV Adoption
Addressing the High Upfront Costs of EVs
Purchasing an electric vehicle outright involves significant capital investment, often deterring small businesses and individual drivers from switching to electric. EV leasing offers a cost-effective alternative by reducing the upfront downpayment required as compared to conventional vehicle financing through Banks or NBFCs and offering flexibility in terms of affordable repayment plans. Leading electric vehicle leasing companies in India, like Alt Mobility, make it easier for logistics companies, fleet operators, businesses and individual driver-owners to acquire electric vehicles without the burden of higher upfront costs or substantial downpayment.
Comprehensive Fleet Management
The operational complexities of managing a big fleet of two-wheeler, three-wheeler or four- wheeler EVs can be overwhelming for most logistics’ organizations. This is where Alt Mobility’s tech platform, FleetOS, makes EV ownership and fleet management extremely smooth and hassle-free. From real-time fleet monitoring and tracking, predictive maintenance alerts, vehicle and battery health diagnostics for improved performance and higher vehicle uptime, businesses can achieve much higher operational efficiencies and reduced Total cost of ownership (TCO).
Tailored Leasing Options
Leasing companies now offer tailored solutions for businesses and individuals, such as an integrated lease, also referred to as a wet lease. The objective is to enable fleets or drivers to focus solely on their job, while all the hassle around vehicle maintenance, servicing, insurance and even fitness renewal is left to the leasing partner. This ensures a transparent and consistent cost structure that eliminates the burden of unexpected expenses. Whether it’s auto leasing services or commercial vehicle loans, businesses can now find solutions that are tailored or customized to their specific operational needs.
Supporting Driver-Cum-Owner (DCO) Models
Leasing can be the perfect solution not just for businesses and large fleet operators but also for individual drivers who aspire to become vehicle owners themselves. This is particularly beneficial for drivers who are currently operating with rented vehicles especially in three-wheeler or autorickshaw category and want to become driver-cum-owners of their EVs.
Access to Advanced EV Models
India’s commercial electric vehicle market is growing rapidly, with notable models like the Mahindra EV three-wheeler, Piaggio Ape Electric, and Euler electric vehicles setting new benchmarks in performance, efficiency and reliability. Vehicle leasing services enable access to these cutting-edge vehicles, allowing businesses to remain efficient and competitive without the need for frequent capital investments or capex.
Key Benefits of EV Leasing
Vehicle Acquisition Made Easy: Leasing reduces the upfront financial burden by offering EVs at a significantly lower down payment as compared to conventional financing, making EV ownership more accessible. This addresses the biggest barrier to EV adoption in India, allowing businesses and individuals to transition comfortably.
Lower Total Cost of Ownership (TCO): Integrated lease offerings from providers like Alt Mobility include everything – vehicle servicing, maintenance, insurance, 24×7 roadside assistance (RSA) and even fitness renewal. This ensures seamless and hassle-free operation for fleets and businesses, significantly reduces financial strain and frees up substantial working capital for fleet operators. The only recurring expense is that of vehicle charging, which translates to just 1/5th as compared to that of CNG vehicles and even lower if compared to ICE vehicles. This means higher profitability for fleets and better earnings for owner-drivers, making EV leasing a smart economic choice.
Flexibility & Scalability: Electric vehicle Leasing offers multiple options at the end of the tenure; you can choose to upgrade, return, or purchase the vehicle as per lease agreement. At the end of the lease term, drivers or fleet owners can get the vehicle ownership transferred to their name basis the residual value of the vehicle and the initial security deposit. Businesses can also scale their fleet effortlessly, as per market demand, by leasing additional EVs without the financial strain of outright purchases.
Access to Latest EV Models: Leasing ensures businesses stay ahead with cutting-edge EV technology, offering better efficiency, vehicle range, and features without long-term ownership risks. Newer EV models often come with improved battery performance, faster charging, and advanced telematics, all of which contribute to better fleet productivity and logistics efficiency. This means reduced downtime, optimized routes, better vehicle utilization, and improved delivery or logistics efficiency.
Pan-India 24×7 Support & High Vehicle Uptime: Companies like Alt Mobility provide nationwide service coverage with 24×7 support, vehicle tracking, and telematics integration, ensuring high vehicle uptime. Their round-the-clock RSA (Roadside Assistance) minimizes downtime and disruptions, keeping fleets operational at all times.
EV Leasing in India: A Booming Industry
Leading Players in the Market
India’s EV leasing ecosystem is witnessing rapid growth, with companies like Alt Mobility setting benchmarks in innovation and customer-centricity, aiming to fast-track India’s electrification journey by leasing both electric commercial and passenger vehicles across two-wheeler, three-wheeler, and four-wheeler segments. From Euler to Bajaj, Mahindra Electric to Piaggio, we fund a wide range of electric vehicle brands that are driving zero-emission mobility in the country, making EV adoption seamless and accessible for businesses and individuals alike.
Government Support and Policies
The Indian government has been proactive in creating a conducive regulatory and policy framework that intends to promote EV adoption through schemes like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) and Production-Linked Incentive (PLI) to make EV manufacturing lucrative and EVs more affordable. Electric vehicle leasing services further accelerate this effort by reducing upfront vehicle acquisition costs and providing seamless ownership experience, making EVs even more accessible to businesses and individuals.
The Role of Financing Solutions
While businesses and fleets have traditionally relied on commercial vehicle loans through Banks and NBFCs, the emergence of leasing models has provided a much-needed boost to EV adoption in India, especially in the two-wheeler and three-wheeler segments. Leasing companies focus on simplifying the vehicle acquisition process, offering flexible ownership models, and reducing the overall cost of operations. By offering innovative, integrated wet lease models, EV leasing companies provide a seamless experience that reduces financial strain on fleets, lowers the capex requirements and significantly improves operational efficiency with improved vehicle uptime and lower costs of ownership (TCO).
Challenges addressed by EV Leasing Companies
High Asset Cost of EVs
EVs are typically 30-40% more expensive than their ICE counterparts, making affordability a major concern, especially for fleets and drivers. The high initial downpayment is often a significant barrier to EV adoption. Alt Mobility has addressed this challenge by designing tailored leasing solutions that allow customers to drive home EVs with a much lower downpayment, effectively removing the barrier of high upfront costs.
Limited Charging Infrastructure
Leasing companies have strategic tie-ups with leading Charging Point Operators (CPOs) such as Statiq, Tata Power, Charge Zone, Jio BP, and more, ensuring that fleets have 24×7 access to reliable charging infrastructure. Some leasing plans also offer integrated charging solutions, which may include subsidized pricing, exclusive pricing (such as for Alt customers), or plans that are inclusive of charging costs, providing added convenience and cost savings for fleet owners.
Maintenance and Repairs
The integrated lease package covers maintenance, servicing, roadside assistance (RSA), insurance, and even fitness renewal. This means the customer only needs to focus on charging and driving the vehicle, while all the responsibilities of vehicle upkeep and maintenance are taken care of by us. No more worrying about the operational challenges of EV ownership.
The Road Ahead: Future of EV Leasing in India
Expanding Beyond Metros
With a growing economy, booming consumer demand, and improvements in road infrastructure and connectivity, Tier 2 and Tier 3 cities are witnessing a surge in demand for commercial vehicles. In these regions, affordability remains a significant concern, and leasing plays a crucial role in overcoming this barrier. By offering lower down payments, leasing companies are making sustainable transportation solutions more accessible, ensuring that the benefits of EV adoption are extended beyond urban centers to cities across India.
Integration with Advanced Technologies
Leasing companies are integrating cutting-edge technologies like telematics, AI-driven fleet monitoring, and blockchain-based contract management, transforming the vehicle ownership experience into a seamless process. These innovations enable remote diagnostics, preventive maintenance, and real-time monitoring, leading to lower operational expenses, improved asset utilization, and higher vehicle uptime. As a result, businesses benefit from enhanced fleet productivity, greater logistics efficiency, and reduced downtime, ensuring smooth, cost-effective operations.
Encouraging Shared Mobility
Electric vehicles, such as electric cars and buses, are significantly costlier than their internal combustion engine (ICE) counterparts, creating a barrier for adoption in ride-hailing, public transport, and shared mobility solutions. Leasing addresses this challenge by making EVs more affordable for ride-hailing companies, cab aggregators, electric transport service providers (ETSPs), and State Transport Undertakings (STUs). By offering a flexible, cost-effective leasing option, EVs become accessible, enabling a much larger scale of adoption. This shift not only supports reduced urban congestion and pollution, but also plays a crucial role in lowering carbon emissions and improving city air quality, contributing to a more sustainable future.
