Sustainable Fleet Solutions: The Power of Innovative Leasing for Corporates

This article is authored by Manas Arora, Co-Founder & CFO, Alt Mobility

As the world becomes more conscious of its impact on the environment, corporate leaders are increasingly looking for ways to integrate environmental, social, and governance (ESG) practices into their operations. One trend that has emerged in recent years is the rise of corporate electric vehicle (EV) leasing that allows companies to demonstrate their commitment to reducing their carbon footprint while also providing practical benefits such as lower fuel costs.


This approach not only aligns with a company's goals and commitments to sustainability but also allows individual leaders to promote a cleaner lifestyle and position themselves as "green champions." According to PwC's 26th Annual Global CEO Survey report, nearly 60% of Indian CEOs are currently in the process of reducing their company's emissions, while 15% have already done so.

Transition to EV fleets
The transition to electric vehicle (EV) fleets is gaining momentum, but there are still several barriers that prevent companies from making the switch. For one, businesses perceive EV technology as risky due to concerns about reliability, maintenance costs, and uncertainties surrounding performance. Residual Value (RV) is often misunderstood in the context of EVs, with some fearing that these vehicles will become financial burdens as they age.

Additionally, the uncertainty surrounding the longevity of EV batteries and concerns about costly replacements can deter businesses from embracing electric fleets. Despite improvements in battery technology, there is still a lack of clarity around how long EV batteries will last and what the replacement costs will be, which can impede the adoption of electric fleets.

Innovative fleet leasing model to make the transition easier
Innovative leasing models focus on lifecycle management. These models aim to make the transition from ICE to EV easier by addressing common concerns and providing comprehensive solutions.

Lifecycle Management with Zero Asset Risk

EVs outperform ICE vehicles by six times in well-to-tank and tank-to-wheel fuel efficiency, with an overall efficiency of 77% versus ICE's 13%. This highlights the significant advantage of EVs over ICE vehicles.

Leasing EVs can help businesses optimise fleet management and reduce administrative duties, including registration, insurance, and maintenance. Partnering with a leasing company provides peace of mind, as the provider manages insurance, servicing, maintenance, and other associated concerns. With a buy-back guarantee, there is zero asset risk involved, making leasing an attractive option for companies looking to adopt EVs.

Financial Flexibility

Leasing is a cost-effective solution that offers financial flexibility by doing away with the requirement for upfront payments. The vehicle is fully managed by the leasing company, providing a plug-and-play experience. There are several benefits to this arrangement, including tax advantages. Additionally, leasing offers the convenience of fixed monthly pricing that covers servicing, parking, and charging at a single location, simplifying budgeting and expense management.

Leasing a car – especially an EV – can benefit salaried individuals with up to 30% annual tax benefits and the ability to claim the entire rental as an expense. If the lease rental is part of your salary package, it reduces your taxable income, giving you a considerable tax advantage. For example, if your salary package is Rs 25 lakh per annum, Rs 5,19,600 will be deducted from your taxable income, and you will pay tax on only Rs 20,59,600.

Real-Time Health Monitoring

Innovative fleet leasing models also incorporate professional dashboards that enable fleet operators to provide real-time monitoring capabilities. Utilising IoT devices installed in the vehicles ensures accurate and up-to-date information. By continuously monitoring the health, performance, and uptime of your fleet, the system helps prevent breakdowns and ensures maximum operational efficiency. This feature allows businesses to proactively address potential issues and maintain optimal fleet performance.

Electric vehicles are the future of sustainable transportation. Leasing presents an economical option for corporates to embrace this change today. By adopting innovative leasing models, businesses can overcome barriers and seamlessly transition to EV fleets, contributing to a cleaner and greener tomorrow.

Disclaimer: Views and opinions expressed in this article are solely those of the original author and do not represent any of The Times Group or its employees.