Increasing awareness and growing demand shows promising signs for the Indian Fleet & Leasing Industry Contact for more details neham@frost.com

1. Operating Lease to drive the Fleet
Leasing Growth in India, Finds Frost &
Sullivan
Research PREVIEW for
Strategic Analysis of Indian Fleet & Leasing Market

2. Key Findings
Company Car Market
• The company car market contributed to approx. 8% of the total new registration of passenger vehicles in 2015
• Outright purchase dominate the market. Operating lease which is expected to grow at a 25% CAGR (excluding the cab
leasing market) from 2015-2020 is expected to drive the vehicle leasing market growth.
• There are approximately 15 players in the organized market who offer one or more fleet leasing services - operating
lease, financial lease or fleet management services
1
On Road Leased Vehicles in India
• The Indian passenger vehicle fleet & leasing market is an untapped market with an active fleet of approx. 52,300
passenger vehicles in the organized market
• The average lease period for a passenger vehicle is approximately 3 years
• The residual value of the vehicle depends on the lease tenure, the OEM brand of the leased vehicle and the purpose for
which vehicle was leased (tool for trade or personal use) and may vary from 20% to 60% of the vehicle’s original price
2
Operating Lease
• Around 2.75 lakh vehicles have been leased under operating lease so far.
• As of 2015, operating lease is a Rs. 1120 crore market has an active fleet of around 42,100 passenger vehicles in the
organized market
• LeasePlan, ALD Automotive, Sundaram Finance and Arval contribute to more than 69% of the total market
3
Financial Lease
• As of 2015, financial lease is a Rs. 370 crore market has an active fleet of around 10,200 passenger vehicles in the
organized market
• Auto Infrastructure Services Ltd (OAIS) and Magma Auto Lease contribute to more than 92% of the total financial lease
market
4

3. Fleet Management
Source: Frost & Sullivan analysis.
Company Car and Leasing Market—Segmentation
Total Market
Fleet Registration
Company Cars Rental Cars Dealer Manufacturer
Operational Leasing Financial Leasing Outright Purchase
Cars used for Auto Expo,
exhibition, R&D, Advertising
etc.
Cars used for display,
replacement vehicles, test
drives in dealerships
Companies providing self drive
cars, taxi Fleets etc.
Cash & Credit Purchase Consumer Leasing
Retail Registration

4. Vehicle as a perk
Vehicle as a
“Tool for Trade”
Business Vehicle
Leasing
By End Usage By Vehicle Type
Passenger Vehicles
Passenger Cars
Utility Vehicles
Vans
Light Commercial
Vehicles
Passenger Carriers
Goods Carriers
Company Car and Leasing Market—Segmentation
Source: Frost & Sullivan analysis.
Vehicle as a part of CTC
Consumer Leasing
Private Leasing

5. Source: Frost & Sullivan analysis.
Low High
Low
High
Certainty
Impact
These are the factors with the greatest impact
on Fleet & Leasing Market in 2015 and
forward.
Increasing
Awareness
GST Implementation
Improvement in Fleet
Analytics & Reporting
More captives
(NBFCs) offering
leasing services
Increase in number of
Vehicle models launched
Growth in Short Term
Rental market
Growth in Cab Leasing
Market Trends
Increasing awareness about benefits of leasing and progress in GST implementation opens up new
opportunities for vehicle Leasing

6. 2015 Post-2020
Future Business Models – Fleet & Leasing Firms
Fleet
Leasing
Company
Vehicle
Leasing
Fleet
Management
Short TermLong Term
Source: Frost & Sullivan analysis.
LCV
Leasing
Self Drive
Cars for
Tourism
Passenger
Vehicle
Leasing
Fleet
Leasing
Company
Fleet
Management
Short Term
Rentals Corporate
Car
Sharing
Website –
Fleet
Consulting &
Service
comparison
• The vehicle leasing companies currently provide only operating lease, finance lease and fleet management Services. Few
firms also provide LCV leasing, corporate car sharing and short term rental but it is not prevalent across the market
• In the next 5-7 years, we would see Indian leasing firms expanding their product portfolio to short term rentals, LCV leasing,
corporate car sharing and other services
• Companies might come up with website which compares the fleet & leasing market players in terms of product portfolio,
services provided and the cost of availing the services

7. Partial List of Companies Interviewed
Source: Frost & Sullivan research.
Company Contact Designation
Arval Head of Sales
LeasePlan General Manager - Sales & Marketing
ALD Automotive Deputy CEO
TranzLease President
ORIX Operations Manager
Magma Auto Lease National Head
SMAS Auto Leasing Assistant Manager- Sales
Tata Capital Assistant Vice President - Sales & National Product Manager
Sundaram Finance Head of Leasing (South Region)
Ford Fleet Business Centre India Head for Corporate Sales
Fortpoint Leasing Solutions Executive Vice President - Leasing & Fleet Management

8. The Full Analysis Features the Following Content
Section Slide Numbers
Executive Summary 7
Research Scope, Objectives, and Methodology 14
Definitions and Segmentations 21
Indian Automobile Industry Overview 28
Indian Fleet & Leasing Market Overview 38
Indian Fleet & Leasing Market 39
PESTLE
40
Market Trends
41
Fleet & Leasing - Market Scenario
42
Fleet & Leasing - Business Prospects
43
Consumer Trends
44
Indian Fleet & Leasing Market Analysis
45
Company Car – New Registration and Forecast
46
Total Vehicles Leased – Active Fleet size and Forecast 47
Operating Lease– Active Fleet size and Forecast 48
Financial Lease– Active Fleet size and Forecast 49

9. Section Slide Numbers
Vehicle Leasing based on Usage– Active Fleet size and Forecast 50
Premium Vehicle Leasing– Active Fleet size and Forecast 51
Key Market Players and Service Offerings 52
Service Offerings and Fleet & Leasing Value Chain 53
Key Suppliers – Operational & Financial Lease 54
Key Suppliers – Market Share 55
Key Supplier Offices & Growth Opportunities 56
External Challenges – Drivers & Restraints 61
Taxes & Vehicle Registration 66
Mega Trends 72
Cab Leasing 74
LCV Leasing – Active Fleet size and Forecast 75
Car Rental 77
Corporate Car Sharing Services 78
Car Pooling Services 79
Telematics and Fleet Management Service Range 81
Future Mobility Business Models 83
Conclusion, Recommendation and Future Outlook 84
The Full Analysis Features the Following Content (cont’d)

10. Key Questions This Study Will Answer
Source: Frost & Sullivan analysis.
What is the size of Company Car, Operating Lease, Finance Lease and Outright purchase market in India?
What is the short-to-medium term outlook for the Indian Fleet & Leasing Industry?
What are the main growth drivers and industry challenges?
What is the business environment of the fleet and leasing market in the India? What are the dynamics and trends of the
market?
What is the structure of the Indian Fleet & Leasing Industry? Who are the key industry participants?

11. Interested in Full Access? Connect With Us
Anita Chandhoke
Corporate Communications
P: +91 80 67028020
E: achandhoke@frost.com
Research Authors
Lead Analyst
Neha Makdey
Senior Research
Analyst- Fleet &
Leasing
Automotive &
Transportation
Research Director
Graeme Banister
Director of
Consulting – Fleet &
Leasing
Automotive &
Transportation
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