Car Leasing Market Analysis

Car Leasing Market Analysis

Based on vehicle type, the market is divided into hatchback, sedan, SUV, and crossover. The sedan segment accounted for around 30% market share in 2023. An observable shift in the car leasing landscape pertains to the evolving demand for sedans. Despite the increasing popularity of SUVs and crossovers, sedans are experiencing a resurgence in leasing preferences. This resurgence is driven by factors such as advancements in sedan design, improved fuel efficiency, and competitive leasing offers from manufacturers. Consumers are increasingly considering sedans for their practicality, comfort, and affordability, signaling a nuanced shift in leasing preferences within the automotive sector.
 

Based on propulsion, the car leasing market is categorized into ICE and electric. The ICE segment held around 73% market share in 2023, due to the widespread availability of ICE vehicles, established infrastructure for gasoline refueling, and the familiarity and reliability of conventional combustion engine technology among consumers. ICE vehicles often offer a broader selection of models, ranging from compact cars to SUVs, catering to diverse needs and preferences. Also, the reliability and familiarity of ICE technology contribute to consumer confidence, as many drivers are accustomed to the performance and maintenance requirements of traditional combustion engines.
 

North America held a dominant car leasing market with a revenue of USD 32.5 billion in 2023. In North America, there is surge in demand for flexible leasing options among non-luxury vehicle segments. Consumers prioritize affordability and practicality, opting for shorter lease terms and customizable plans. This trend reflects a shift towards accessibility and convenience in leasing choices across the region. For instance, In June 2023, Ford and Uber unveiled the Ford Drive program, a pilot project offering flexible leases on Mustang Mach-E models to Uber drivers in California. This initiative aligns with Uber's ambition to transition to a zero-emission platform across North America.