India’s shared mobility market is experiencing a transformative surge, driven by rapid urbanization, technological advancements, and a growing emphasis by the government on sustainable transportation solutions. Shared mobility or ride-hailing includes bike-sharing, car-sharing, and even bus rides—that provide flexible, cost-effective, and efficient transportation options without the need for vehicle ownership. By reducing the number of vehicles on the road, shared mobility not only helps in easing traffic congestion but also helps in lowering fuel consumption and minimizing vehicular emissions. This, in turn, plays a crucial role in addressing key challenges pertaining to air quality index in cities, rising fuel expenses, road congestion, and overall efficiency of the transport system.
Major players such as Ola, Uber, Rapido, Bounce, BluSmart, Yulu and Zypp Electric are leading this change, offering innovative shared mobility solutions. The market has tremendous potential, projected to grow by almost 7% between 2025 and 2029, and is expected to touch USD 135 billion by 2029, as consumers and organizations seek cost-effective, sustainable mobility solutions. However, high cost of electric vehicles remains the biggest barrier to EV adoption, especially in developing economies like India.
EVs are typically 40-50% more expensive than their ICE counterparts, across vehicle segments, largely due to the high cost of batteries. Not just individuals, but even businesses are slightly apprehensive when it comes to electrifying their fleets for supply-chains or logistics’ operations. However, the benefits of electrification, especially commercial vehicles, far outweigh the higher upfront costs. And with new-age EV leasing players entering the market, businesses and fleets can expect a complete transformation of their operations.
While reducing the need for high Capex, thereby reducing the financial burden of fleets, EV leasing also enables access to the latest EV technology, ensuring much improved fleet performance with better uptime, vehicle health and minimal maintenance costs. And not just large fleet operators, but even individual drivers (driver-cum-owners) have started to recognize EV leasing as a better model in terms of commercial viability for their vehicle finance needs. While leasing makes vehicle acquisition easier and more affordable, the inherent advantage of EVs in terms of lower running cost (TCO) contribute to higher operational efficiency and financial health of both fleets and businesses.
EV Leasing: Driving Growth in India’s Shared Mobility Market
EV leasing is proving to be a game-changer in India’s shared mobility sector, enabling shared mobility operators to accelerate the adoption of electric vehicles, reduce vehicular emissions, and experience economic benefits through lower operating costs. Companies like Alt Mobility offer innovative leasing solutions like a ‘wet lease’, an integrated all-inclusive offering, wherein drivers or fleets have to simply pay a structured monthly lease rental, while the entire hassle of vehicle maintenance, servicing, insurance and fleet management is handled by the leasing company. This way, operators are able to focus better on their core job of running the fleet operations, assured that vehicle health and uptime are taken care of by the leasing partner.
This growth is attributed to several factors:
Mitigating High Upfront Costs
High vehicle acquisition cost remains the biggest barrier impacting not only small fleets or individual driver-cum-owners, but also large fleet operators who face the dual challenge of significant Capex and working capital management. Leasing enables customers to acquire EVs at downpayments much lower as compared to traditional vehicle financing, freeing up valuable capital. Moreover, companies like Alt Mobility offer flexibility in terms of affordable monthly or weekly lease rentals, making the transition to electric mobility more accessible and financially viable. Moreover, for companies that want to remain asset-light, leasing is the perfect solution if one doesn’t want to have vehicles on their own books.
Streamlining Fleet Management
Fleet management plays a crucial role in optimizing logistics and business profitability. Alt Mobility’s FleetOS platform offers round the clock vehicle monitoring, battery health diagnostics, predictive maintenance alerts etc. to ensure top-notch asset health, minimize breakdowns and ensure maximum vehicle uptime.
Customized EV Leasing Solutions
Modern leasing companies provide tailored solutions to suit requirements of fleet operators, such as all-inclusive or wet leases, which cover vehicle maintenance, servicing, insurance, and even fitness renewals. This approach ensures a predictable cost structure and eliminates unexpected expenses. Additionally, it simplifies fleet management for both fleet operators and Driver-Cum-Owners (DCOs), allowing them to focus solely on running the vehicles while the leasing partner handles all operational aspects.
Empowering Driver-Cum-Ownership Models
EV leasing benefits not only large fleet operators but also individual driver-cum-owners aspiring to become vehicle owners. This model is especially advantageous for those currently renting vehicles, particularly in the three-wheeler and auto-rickshaw segments, as it provides a pathway to ownership with minimal initial investment. Moreover, beyond drivers, the DCO model has also created income opportunities for individuals seeking earnings in India’s rapidly growing economy. With rising demand in the job market for employee transportation (ETS) and the government’s focus on electrifying public transport—including buses, e2Ws, e3Ws, and electric cabs – the DCO model is becoming a key enabler of sustainable mobility.
Access to Advanced EV Models
India’s EV market is rapidly evolving, with continuous innovation driving new product launches across various vehicle segments each year. Leasing services enable businesses to stay ahead by accessing the latest, most efficient, and reliable EV models without the burden of frequent capital expenditures, ensuring long-term competitiveness.
By leveraging EV leasing, shared mobility operators in India can overcome challenges around EV adoption, smoothly transition to electrified fleets, and contribute to building a clean mobility ecosystem.
Overcoming Barriers to Electric Vehicle Adoption in Shared Mobility Market
As the demand for eco-friendly transportation solutions grows, shared mobility operators face unique challenges in adopting electric vehicles (EVs). High vehicle acquisition cost, inadequate charging infrastructure and maintenance expenses are just a few of the hurdles that can impede progress. However, EV leasing solutions are providing transformative answers to these challenges, enabling smoother transitions to cleaner, more efficient fleets.
Tackling High Initial Costs
One of the most significant barriers to EV adoption in the shared mobility space is the high upfront cost of electric vehicles. EVs can be 30-40% more expensive than their internal combustion engine (ICE) counterparts, posing a financial risk for fleet operators. The high upfront costs or the downpayment required to purchase EVs often discourages businesses from making the switch.
Leasing offers a powerful solution by significantly reducing the initial financial burden. Instead of making large upfront payments, operators can access top-tier electric vehicles with much lower downpayments. By removing the barrier of hefty upfront cost, leasing opens the door to sustainable fleet solutions, helping businesses transition to EVs without compromising on affordability.
Ensuring Reliable Charging Infrastructure
A crucial factor in the adoption of electric vehicles is having access to reliable and widespread charging infrastructure. Fleet operators often face concerns about charging station availability, especially when operating on last and mid-mile delivery routes.
Leasing companies like Alt Mobility, however, have partnered with prominent Charging Point Operators (CPOs) such as Tata Power, Statiq, Jio BP, and Charge Zone to ensure fleets have uninterrupted, 24×7 access to charging network. Some leasing plans even go a step further by offering integrated charging solutions, offering exclusive or subsidized pricing for fleet owners. This ensures seamless fleet operations with zero vehicle downtime because of charging related concerns.
Simplifying Maintenance and Repairs
The complexities of vehicle upkeep, including maintenance, repairs, and servicing, can be overwhelming for shared mobility businesses. Electric vehicles come with specific maintenance needs, and operators may worry about unanticipated costs and downtime.
EV leasing addresses this concern by offering all-inclusive services that cover not just the vehicle’s maintenance but also roadside assistance (RSA), insurance, and even fitness renewal. This integrated service package takes the responsibility of vehicle upkeep off the operator’s shoulders, allowing them to focus solely on their business and fleet operations. With these worries alleviated, fleet managers can enjoy the benefits of EV adoption without the operational headaches of traditional vehicle ownership.
What is the Future of EV Leasing and Shared Mobility Market in India
Expanding Beyond Urban Centres
While major metropolitan areas have already embraced the electric shift, Tier 2 and Tier 3 cities are catching up quickly, spurred by economic growth and improvements in road infrastructure. These regions, traditionally more cost-sensitive, are where EV leasing can have the most impact.
Leasing solutions are crucial in making EVs affordable for operators in smaller cities, where fleet operators are often hindered by budgetary limitations and relatively low spending power of users. With lower down payments and flexible terms, leasing opens up access to sustainable transportation solutions, ensuring that the benefits of EV adoption are extended beyond urban centres. Additionally, the growing demand for shared mobility, ride-hailing, and electric transport services (ETS) in Tier 2 and 3 cities presents an opportunity for job creation through the Driver Cum Owner (DCO) model. This shift not only contributes to cleaner air but also enhances economic opportunities for businesses and individuals in emerging cities.
Embracing Advanced Technologies for Seamless Operations
To further enhance fleet operations, leasing companies are integrating advanced technologies such as AI-driven fleet monitoring, telemetry, and blockchain-based contract management. These innovations are revolutionizing fleet management by enabling remote diagnostics, predictive maintenance, and real-time vehicle monitoring.
By leveraging these cutting-edge technologies, fleet operators can achieve higher vehicle uptime, better asset utilization, and lower operational expenses. This translates into improved productivity, greater logistics efficiency, and a smoother, more cost-effective fleet operation—key advantages in the competitive shared mobility landscape.
Encouraging Widespread EV Adoption in Shared Mobility
The shift toward electric vehicles in the shared mobility sector is essential for tackling major issues of urban congestion and pollution. However, the higher purchase price of EVs, especially for ride-hailing companies, electric transport service providers (ETSPs), and State Transport Undertakings (STUs), can create barriers to large-scale adoption. In addition to government incentives and subsidies promoting EV adoption, Leasing provides an affordable, flexible route for operators to incorporate electric vehicles into their fleets, breaking down financial barriers and promoting broader EV adoption. As more and more shared mobility operators make the transition to EV solutions, the shift will not only help reduce the problem of urban pollution and carbon emissions, but also contribute to a cleaner, healthier future for the citizens.
Alt Mobility: One of India’s Top EV Leasing Companies
Alt Mobility is India’s most reliable EV leasing and asset management platform, specializing in electric two-wheeler, three-wheeler, small and medium commercial vehicles, as well as electric passenger cars, for individual drivers, fleets as well as businesses.
Why Choose Alt Mobility for EV Leasing?
- 10,000+ Vehicles Leased – Proven track record in asset management.
- 200 Cr+ AUM – Expected to reach INR 500 Cr+ by FY26.
- 30+ EV Models – Access to top brands like Mahindra Electric, Tata Motors, Piaggio, Montra, Euler Motors, and more.
- Integrated FleetOS Platform – Smart fleet management with real-time vehicle tracking.
- Minimal Deposits & All-Inclusive Leases – Cost-effective solutions for fleets and individual drivers.
- Pan-India Coverage and 24×7 Support – Reliable leasing services across the country.
Whether you’re a logistics company, fleet owner, or an individual driver, Alt Mobility provides tailor-made, hassle-free, affordable leasing solutions to meet your needs.
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