India Commercial Vehicle Leasing Market Size, Share, and COVID-19 Impact Analysis, By Vehicle Type (LCV, HCV, MCV, and Three-Wheeler), By Propulsion (ICE and Electric), By Leasing Duration (Short Term (2-5 Years) and Long Term (More Than 5 Years)), By End User (Corporate & Institutional, Individual/Owner-Operators, and Government/Public Sector), and India Commercial Vehicle Leasing Market, Insight, Industry Trend, Forecasts to 2035.

India Commercial Vehicle Leasing Market Insights Forecasts to 2035

• India Commercial Vehicle Leasing Market Size 2024: USD 11.19 Billion
• India Commercial Vehicle Leasing Market Size 2035: USD 32.2 Billion
• India Commercial Vehicle Leasing Market CAGR: 10.09%
• India Commercial Vehicle Leasing Market Segments: Vehicle Type, Propulsion, Leasing Duration, and End User

The commercial vehicle leasing market characterizes that part of the industry which supplies business needs with various types of vehicles like trucks, vans, buses, etc., on a rental basis under contract rather than having them purchased. LeasePlan and ALD Automotive are two such organizations offering vehicle fleet leasing, upkeep, and asset management services. This model has become the rule in the sectors of logistics, e-commerce, construction, and public transportation, where it is employed to reduce the cash outflow on assets, increase the flexibility of the fleet, and underpin the efficiency of operations.

The India government is encouraging the transition to electric CVs to reduce CO2 emissions, often offering subsidies under frameworks like FAME. Government Initiatives in India, including Net SGST reimbursement for EV-related services and specific support for electric trucks and urban last-mile delivery vehicles. Drivn had pursued an asset-owning, long-term leasing model to accelerate EV adoption in heavy transport. The India-US trade pact had unlocked cheaper capital, advanced EV technologies, and stronger supply chain integration, thereby boosting momentum for commercial fleet electrification across the sector.

The commercial vehicle leasing market is getting larger as more consumers need things transported and companies want to own vehicles. Companies like LeasePlan, ALD Automotive, Tata Motors, and Ashok Leyland are working with fintech and telematics providers to make their digital fleet solutions better. The great trends in the commercial vehicle leasing market are vehicle leasing and subscription models. There are also opportunities for the commercial vehicle leasing market to grow with things like using intelligence to maintain vehicles, more people shopping online, and making customized leasing options for small and medium-sized businesses and companies that transport goods.

Market Dynamics of the India Commercial Vehicle Leasing Market:

The India commercial vehicle leasing market is being driven by businesses shifting to flexible, asset-light fleets that cut upfront capital costs and improve operational efficiency, especially in logistics, last-mile delivery, construction supply chains, and corporate fleets. Growth is also supported by digitization through telematics and subscription models, the rising adoption of EVs backed by green financing and subsidies, and the need for scalable fleet solutions that enhance cash-flow planning and compliance with safety and emission standards. Increasing demand for fleet standardization across multi-location enterprises, faster turnaround time in vehicle deployment, risk mitigation against asset depreciation, integration of data analytics for route profitability tracking, growing preference for pay-per-use mobility models, rising startup-led hyperlocal delivery services, and the need for balance sheet optimization under evolving accounting standards.

The India commercial vehicle leasing market faces restraints such as high capital requirements, residual value risks, regulatory complexities, and fluctuating fuel prices. Market fragmentation and limited awareness among small fleet operators also hinder adoption, restricting overall scalability and profitability growth.

Leasing service providers are increasingly joining green financing solutions by partnering with banks, NBFCs, and government initiatives such as FAME India. These structured finance models lower upfront costs and reduce economic risks for lessees by addressing concerns related to vehicle depreciation, evolving battery technology, and uncertain resale value, key barriers to large-scale electric fleet adoption in India’s commercial vehicle leasing market. The combined effect of green financing and leasing creates a powerful proposition for businesses, especially SMEs and logistics service providers, that can rapidly transition to eco-friendly vehicles while preserving working capital and operational flexibility.

Market Segmentation

The India commercial vehicle leasing market share is classified into vehicle type, propulsion, leasing duration, and end user.

By Vehicle Type:

The India commercial vehicle leasing market is divided by vehicle type into LCV, HCV, MCV, and three-wheeler. Among these, the HCV segment controlled the market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The HCV segment dominated due to demand from large logistics players, major infrastructure projects, and bulk cargo movement, where leasing reduces upfront capital costs for operators.

By Propulsion:

The India commercial vehicle leasing market is divided by propulsion into ICE and electric. Among these, the ICE segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The ICE segment dominance is driven by established fueling infrastructure, lower upfront costs, and widespread adoption of conventional vehicles across long-haul and regional transport.

By Leasing Duration:

The India commercial vehicle leasing market is divided by leasing duration into short term (2-5 years) and long term (more than 5 years). Among these, the long-term leasing (more than 5 years) segment accounted for the highest market share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This growth is supported by stable cash-flow planning, lower annual costs, and strong demand from large logistics and infrastructure firms.

By End User:

The India commercial vehicle leasing market is classified by end user into corporate & institutional, individual/owner-operators, and government/public sector. Among these, the corporate & institutional segment dominated the market share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The corporate & institutional segment dominated due to corporates are increasingly adopting electric fleets and long-term contracts, further supporting steady growth and higher CAGR during the forecast period.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the India commercial vehicle leasing market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. 

Top Key Companies in India Commercial Vehicle Leasing Market:

• ALD Automotive India
• Hinduja Leyland Finance Ltd.
• LeasePlan India Pvt. Ltd.
• Mahindra & Mahindra Financial Services Ltd.
• ORIX Auto Infrastructure Services Ltd.
• Shriram Transport Finance Company Ltd.
• SMAS Auto Leasing India Pvt. Ltd.
• Srei Equipment Finance Ltd.
• Sundaram Finance Ltd.
• Tata Capital Financial Services Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the India, regional, and country levels from 2020 to 2035.Spehrical Insights has segmented the India commercial vehicle leasing market based on the below-mentioned segments:

India Commercial Vehicle Leasing Market, By Vehicle Type

• LCV
• HCV
• MCV
• Three-Wheeler

India Commercial Vehicle Leasing Market, By Propulsion

• ICE
• Electric

India Commercial Vehicle Leasing Market, By Leasing Duration

• Short Term (2-5 Years)
• Long Term (More Than 5 Years)

India Commercial Vehicle Leasing Market, By End User

• Corporate & Institutional
• Individual/Owner-Operators
• Government/Public Sector