Passenger Vehicle leasing is a widely known concept which has steadily grown over the years in Indian market. At the same time, Commercial Vehicle leasing has faced its own set of headwinds. To name a few, domination of micro fleet operators (2-5 trucks) resulting in relatively low or nil importance to legal and tax benefits coupled with marketing and recovery bottlenecks. In the developed countries, CV leasing has grown from 4 per cent market share in the 70s, to over 30 per cent today. In the Indian context, future of CV leasing may be at tipping point today.
Leasing companies can very well use technology for fleet management and keeping an indirect eye on the key performance indicators.