Leasing can charge up the EV market
For potential but skeptical consumers, leasing can be a convenient way of testing EVs for a long period before committing a substantial sum to own one
Every new technology, especially if it is disruptive, encounters numerous doubting Thomases. The skepticism is heightened especially if one needs to invest a lot of money in testing the new technology. The emerging market of electric vehicles presents such a situation. Though the government is keen to push electric vehicles and is encouraging manufacturing, research and development and innovation, a lot of potential consumers might have numerous questions about the technology, product, support and service infrastructure. The recent instance of an executive taking his electric two-wheeler his kitchen on the fifth floor simply to charge after he failed to convince the resident of his apartment in Bangalore illustrates rather spectacularly the sort of resistance an user of new technology might face.
To overcome hurdles, leasing can be of substantial help. In India, leasing of personal passenger vehicles never took off the way it did in some other developed countries such as the US, possibly because of sentimental values attached to ownership” of an asset that’s used intimately. But as the electric vehicle market starts showing promise, several financiers, start-ups and mobility solution providers are now preparing to push leasing in the nascent electric vehicle segment in the country. It would be a bright idea to popularise this new segment since leasing would allow consumers to test this new technology and service infrastructure in real life conditions before locking up a significant amount in them. Moreover, leasing will allow the users to avoid the hassles of registration, insurance and maintenance.
It makes sense for the consumer not to block a lot of money from his pocket or incur debts form banks on some asset about which he is not very confident. Leasing allows him/her to use the vehicle for a prolonged period to be satisfied about all the infrastructure and support that a vehicle needs before he might settle for ownership.
Leasing can provide a convenient way of realising the electric vehicle potential in the country. In August almost 29,000 electric vehicles were sold that marked a 10% jump compared to July. ICRA has estimated that electric two-wheelers could record 10% of new vehicle registrations by 2025.