Question 1

Is EV fleet leasing cheaper than buying in India?

Accepted Answer

Rarely on headline cost — the rental contains the lessor's funding cost, margin and the price of the residual risk they absorb. Leasing wins when your cost of capital is high, your duty cycle makes battery degradation a real exposure, or client contracts are shorter than the vehicle's life. Buying wins when you borrow cheaply and can use the depreciation shield.

Question 2

Who carries battery degradation risk in an EV fleet lease?

Accepted Answer

Entirely a matter of contract, which is why the state-of-health clause matters more than the rental. Most structures move some battery risk to the lessor, but many set a minimum SOH at hand-back with penalties below it and cap the kilometres assumed. Ask who measures SOH, by what method, and what happens if you exceed plan.

Question 3

Does Ind AS 116 mean leasing no longer improves my balance sheet?

Accepted Answer

Largely, yes. Most leases are recognised as a right-of-use asset with a matching liability, so gearing ratios reflect them much as debt-funded ownership would. What remains is risk transfer and flexibility, not balance-sheet cosmetics.

Question 4

How does battery leasing differ from leasing the whole vehicle?

Accepted Answer

You buy the vehicle without its pack and pay a separate monthly or per-kilometre fee for the battery. That lowers the upfront cost and isolates degradation risk, but the vehicle becomes hard to resell independently of the battery contract — check the assignment terms first.

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