Car leasing market in India has been existent since over a decade, however, it is still in its nascent stage. There has been absence of an organised used car market in India. Moreover, the corporations in India have a tendency to own the vehicles. It is time to make the corporations get acquainted with benefits of car leasing.
The leasing arm of BNP Paribas, Arval, aims to procure 10,000 cars in next five years and offer the much needed boost to the car leasing industry in India. It currently operated in Delhi, Mumbai Bangalore and Chennai with its 125 vehicles. It now plans to expand to Pune, Hyderabad, Kolkata and Ahmedabad.
Various leasing companies have been operating in India since the past 10 years but did not yet make a major impact on the corporate sector that has the mindset to own the vehicle rather than leasing it. However, ever since the used car market has been organised and new cars have been entering India with the most competitive prices, the mindset have been changing. Corporate sector has been finding it difficult to dispose off their used cars and now has slowly started adapting the policy of leasing the cars for specific period of time.
The car leasing industry is also expecting growth with more MNCs entering India which are already used to leasing cars in their operations worldwide.
