Car leasing in simple terms is like car renting for a well-defined period without having to bear the traditional car ownership problems. Car leasing for individuals is best for small businessman, corporate professionals, youth and luxury car aspirants. Not only you get to pay a lesser monthly payment compared to a traditional loan on car, you enjoy changing vehicles every few years without having to worry about the upkeep and other ownership hassles and costs.
As with all emerging markets, the prospects of Car leasing in India for individuals or the retail segment may not be huge at the moment but it can be a significant market disruptor in the years to come. Let’s have a look at 5 key factors that make car leasing for individuals in India something to bet on!
- Growing Millennial, Gen-Z population: Having over 55% of the population under 25 makes India a hotbed of Gen-Z and millennial demographic. The divergent and individualistic lifestyle of India’s youth favor in heavily for car leasing over the traditional ownership model. With luxury car lovers, young entrepreneurs, and even beginner professionals, all preferring the features they get with leasing a car vs. carrying the burdens of owning a car.
- The Untapped Segment Potential: Because a significant percentage of the car leasing market share in India comes only from corporate leasing, the scope, opportunity, and potential for car leasing for individuals in India is seriously high. By utilizing the service credibility already established through corporate leasing, the market for leasing for individuals can be created through awareness, marketing and advertising campaigns.
- Unifying the Unorganized Sector: The car leasing segment other than corporate leasing is taken over significantly by the fragmented unorganized sector. This included taxi service owners, small regional players, and individual businessmen. Not only leasing through these channels costs higher it also doesn’t come with much of the features because of these being part of the unorganized sector. The potential to formalize, unify and bring in these under organized individual car leasing is huge.
- Traditional Customers looking for alternate solutions: Youth or not, the actively employed population of the country has started eyeing alternate options when it comes to personal mobility. With traditional car ownership model proving less attractive compared to leasing options, consumers have already started migrating to carpooling and ride hailing options. This strongly hints that there’s scope to make car leasing for individuals a strong alternate if executed with business acuity.
- Growing Popularity of EV and AI: Strict emission norms and creating a sustainable environment is making EVs the future of mobility. Due to the unpredictability in the approximate residual value for EVs, therein lies a huge potential for leasing EVs. Currently in its infancy, EVs carry the hope of becoming the face of Individual car leasing in India if utilized well. Employing the high-end digital infrastructure enabled by AI & ML, car leasing could be made a highly convenient, seamless and credible alternate to traditional car ownership in India.
Avis Lease has been one of the most if not the most trustworthy name when it comes to car leasing in the world and in India. Being the preferred choice of thousands of corporates and individual consumers alike, Avis India is paving way for India to become a significant player when it comes to the individual car leasing segment in the near future.