Europe Car Leasing Market Size- By Vehicle, By Propulsion, By End Use, By Leasing, By Service Providers, Growth Forecast, 2026 - 2035

Europe Car Leasing Market Size

The Europe car leasing market was estimated at USD 90.6 billion in 2025. The market is expected to grow from USD 99 billion in 2026 to USD 171.2 billion in 2035, at a CAGR of 6.3% according to latest report published by Global Market Insights Inc.

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The supportive company car tax, deductibility of VAT and treatment of operating lease as an accounting method on Europe highly encourage leasing instead of ownership. New vehicles are dominated by corporate fleets in new vehicle markets like Germany, UK and France. Leasing allows predictability of costs, effectiveness of balance sheet and provides easy renewal of fleet which maintains high leasing penetration structurally in Western and Northern Europe.
 

Major players operating in the market are emphasizing mergers & acquisitions to enhance their car leasing comparison. For instance, in October 2024, Carwow acquired Gridserve Car Leasing from Gridserve, a UK based on-the-go electric vehicle (EV) charging company. The acquisition is in line with company’s strategy to speed up online cars changing marketplace with major focus on EV lease deals. The acquisition will also enhance company’s car leasing comparison engine and will offer Carwow users with a broader range of car leasing options from various brokers across UK.
 

Strict CO 2 emission regulations and the growth of low-emission areas in the EU is a catalyst to EV adoption via leasing. Leasing eliminates battery depreciation, residual value risk, and obsolescence of the technology in a short time to the customers. The incentives, charging solutions and maintenance are offered by OEMs and lessors in lease contracts, thus making leasing a favored avenue of deploying electric passenger and fleet vehicles.
 

Europe is already experiencing a full-service leasing ecosystem incorporating a maintenance, insurance, telematics, and fleet management environment. Multinational corporations use standardized cross-border fleet solutions offered by large pan-European lessors and OEM captives. This operational complexity lowers administrative cost of lessees and strengthens leasing as a default mobility model as opposed to a financing one.
 

The shift towards car ownership to usage-based mobility is increasing due to urbanization, increasing vehicle prices, and shifting consumer behaviors. Leasing is consistent with the need to maintain flexibility, consistent monthly payments, and shorter replacement time. The leasing models that are subscription based would further blur the distinction between leasing and mobility services to cover a broader addressable demand than traditional corporate fleets.
 

Eastern Europe is the most rapidly expanding car leasing segment since the blistering vehicle costs, constrained bank lending, and augmenting formalization of the company compel SMEs and fleets to lease. The rapid growth of logistics, common mobility, and transnational trade forces the need to hire professionally managed fleets. Historical leasing penetration is low thus exerting high catch-up growth in Poland, Czech Republic, Hungary and Romania.
 

Western Europe has a strong market share based on institutionalized company leasing facilitated by taxation and VAT recovery schemes for operating leases. Leasing is integrated into company car schemes in Germany, UK, France, and Nordics. The industry in Western Europe is dominated by mature OEM captives/full-service lessors for vehicle procurement, making leasing a default car procurement solution in these regions.
 

Europe Car Leasing Market Trends

The car leasing industry in Europe is enjoying the advantage of the fact that the company car culture is well institutionalized, especially in Western and Northern Europe. Corporates and SMEs are being incentivized to lease vehicles instead of owning them by favorable taxation, VAT recovery and operating lease accounting treatment. Leasing is now the standard fleet acquisition of the fleet, which provides steady repeated demand throughout economic cycles.
 

The high EU CO 2 emission targets, low-emission zones, and national decarbonization policies are driving the EV adoption by leasing. Leasing averts battery degradation, uncertainty in residual value and fast technology obsolescence. OEM captives and independent lessors package incentives, charging infrastructure and maintenance in lease contracts making leasing the favored channel of deploying electric vehicles.
 

The advancements in the direction of the full-service leasing schemes, including the incorporation of maintenance and insurance, roadside support, telematics and fleet management simplify the work of lessees. To enhance the predictability of cost and efficiency in administration, corporations are enabling vehicles to go through the lifecycle management of professional lessors. This value proposition, which is service based, enhances long-term leasing adoption other than mere financing of vehicles.
 

The digital transformation is transforming the leasing industry in Europe by making it possible online to configure vehicles, credit evaluation is automated, and fleet analytics is real-time. Digital solutions reduce the duration of the contract, promote openness, and serve customers of both types of lessees (ones private and corporate). Leasing that allows optimization of data as a result of technology-enabled leasing also aids in strengthening the value proposition of leasing in competitive mobility markets.
 

The shift in ownership towards usage-based mobility solutions is escalating because of increasing vehicle prices, urbanization and evolving consumer preferences. Leasing provides reliable monthly expenses, flexibility, and enables one to access newer vehicles without the risk of long-term ownership. The leasing concept in the form of subscription serves to increase the demand of urban professionals and mobility-targeted consumers in the principal European cities.
 

Eastern region is propelling the incremental market because of low leasing penetration in the past and a growing demand for vehicles. The increase in SMEs, logistics, and international trade creates a demand for leasing fleets. With tightening finance and higher vehicle prices, leasing becomes an attractive option, leading to strong catch-up growth in Poland, the Czech Republic, Hungary, and Romania.
 

Europe Car Leasing Market Analysis

Based on propulsion, the Europe car leasing market is divided into ICE and EV. The ICE segment dominated the market, accounting for around 92% in 2025 and is expected to grow at a CAGR of 5.7% from 2026 to 2035.
 

• ICE vehicles still occupy a leading role in the leasing volumes in Europe because of the lower initial costs and the certainty of overall costs of ownership with respect to EVs. Higher predictability of maintenance profiles, broad service coverage, and steady residual values are some of the reasons why ICE models are popular with cost-conscious SMEs and large fleets that want certain budgets and high utilization of their vehicles.
   
• Charging infrastructure beyond big cities of Western Europe is inadequate to serve a large EV fleet. ICE leasing is still the reasonable option to regional fleets and rural mobility as well as long-range use. This infrastructure gap is keeping high demand of ICE vehicles in the leasing portfolios of Southern and Eastern Europe.
   
• Most of the corporate fleets use multi-year replacement models and are moving sluggishly to electrifying. ICE vehicles are in the middle of this transition process because of the current fleet policies, familiarity of drivers, and reliability of the operation. Leasing helps businesses to avoid full electrifying but still meet the requirement of the current regulation rules.
   
• The European mature used-car markets contribute to comparatively steady residual values of the ICE cars, and they diminish the risk to the lessors. High demand of the used ICE cars, especially in the export markets, and especially in the Eastern Europe markets increases the efficiency of remarketing. This residual value assurance makes the economics of ICE leasing more fortified than the newer less predictable EV asset classes.
   
• ICE cars are still favored due to their high-mileage, multi-shift, and heavy-duty use in logistics, sales, and intercity transportation. Short refueling times, high operational range and reduced downtimes are ideally suited to the productivity-based fleet needs. Leasing also allows renewal of the fleet in a structured manner with continuity of the operations.
   
• Whereas Western Europe moves faster with EV incentives, the electrification is not well supported by a number of European markets. ICE automobiles are still enjoying good taxation, fuel supply and acceptance of regulation in these areas. The problem of this uneven policy environment is stocked by leasing companies, which are keen to retain high ICE offerings, adjusted to the local market economy.
   

Based on vehicle, the Europe car leasing market is segmented into city cars, superminis, compact cars, mid-size cars, executive cars and luxury cars. The compact cars segment dominate the market with 36% share in 2025, and the segment is expected to grow at a CAGR of 7.7% from 2026 to 2035.
 

• The population in Europe and the limited space within the city infrastructure is in favor of the compact cars in order to get around. Compact vehicles are handy to lease due to a convenient parking zone, maneuverability and adherence to traffic regulations in the city. Compact cars are being more favored over corporate and private lessees to achieve the highest mobility efficiency in overcrowded metropolitan regions in the West and Southern Europe.
   
• Compact automobiles have reduced acquisition costs, fuel usage, and maintenance and this translates to cheap and fixed leasing rates. This low-price attraction applies to SMEs, first time lessees, and price sensitive individual consumers. Due to small form figures, leasing providers are using the concept to acquire larger customer bases and still retain profitable margins and renewal rates of contracts.
   
• Compact cars are hugely used as the entry level company car with the junior employees and with functional roles. Standardized compact fleets ease the purchase procedure, lower the total cost of ownership and facilitate uniform fleet policy. By leasing, corporates can update their vehicles on a regular basis with a cost-effective strategy and respond to internal sustainability and mobility strategies.
   
• Compact cars are generally lower in emissions and are in good tax and benefit-in-kind bracket in most European countries. The leasing of small cars assists companies and individuals to be in agreement with the environmental regulations regarding emissions and reduction of taxes. This regulatory congruity maintains the demand of compact cars in the leasing portfolio of Europe.
   
• Small vehicles enjoy extensive secondary market demand, which facilitates good residual value and remarketing at the end of lease. Younger cars attract high demand from buyers of used cars and export markets, which lessen depreciation risk to lessors. This stability in residual values enhances the competitiveness of lease prices and promotes the increase in leasing penetration in the compact car segments.
   
• Compact cars come in various brands and different forms of powertrain that include ICE, hybrid, and entry-level EVs. Compact cars can be easy to modify by the leasing companies to meet the local market preferences and regulations. This flexibility helps lessors to scale down small scale leasing programs in different European markets effectively.
   

Based on end use, the Europe car leasing market is segmented into private leasing, and company leasing. The company leasing segment dominated the market, accounting for share of 65% in 2025.
 

• The company leasing in Europe is highly motivated by the availability of favorable tax treatment such as VAT recovery, deduction of lease payments and optimal benefit in kind arrangements. Leasing helps the corporation to reduce fiscal load and provide mobility benefits to the employees. Leasing is the best vehicle acquisition model in the West and North Europe due to these tax benefits.
   
• Leasing also helps companies to transform the large initial investments in vehicles into predictable future operations. This enhances efficiency of cash flow and balance sheets especially when operating under operating lease structures. Leasing is going to be more and more adopted by corporates to stabilize fleet budgets, reduce capital intensity and enhance financial planning even in multi-year fleet replacement cycles.
   
• There is a growing tendency by corporations to outsource fleet operations to professional lessors with full-service leasing. Combined maintenance, insurance, tire control as well as telematics minimize administrative efforts and operational risk. With this trend of outsourcing, the company is able to concentrate on core operations and enjoy the advantage of professional lifecycle management and a better total cost of ownership of the vehicles.
   
• One of the major facilitators of corporate decarbonization approaches in Europe is company leasing. Leasing means that firms can embrace EVs without any future technology or residual value risk. Lessors deliver packages, pay-as-you-go solutions, and fleet analytics, and corporate leasing is the quickest path to the attainment of the sustainability and emission reduction goals.
   
• There is a growing interest among multinational companies in standardized fleet solutions in several countries within Europe. The pan-European leasing companies provide harmonized service levels, centralized reporting and unified contracts. The standardization across borders enhances growth in corporate leasing by making it easier to comply, procure and manage fleets in a variety of regulatory backgrounds.
   
• Company leasing helps to accommodate the changing mobility requirements of the workforce through the provision of flexible access to vehicles as an employee benefit package. Leasing helps the companies to offer regular, contemporary cars at both levels of employees to adapt to the hybrid work trends. Such mobility advantage of vehicles maintains the demand of company leasing program on a long-term basis.
   

Based on leasing, the Europe car leasing market is divided into open-ended and close-ended. Close-ended dominates with 75% market share in 2025.
 

• The reason behind closed-ended leasing is the desire of the lessees to place the residual value risk in the hands of the professional lessors. Customers do not have to deal with any uncertainty over depreciation of the vehicle, particularly with the ever-changing prices of used cars and changing emission policies. This shielding characteristic of closed-ended leases is especially appealing in cases where a corporation or private lessee wants to know the results at the end of the lease term.
   
• Closed leases offer fixed monthly payments and pre-established mileage and wear terms and conditions and are characterized by good budget visibility. This structure is preferred by the corporations and the SMEs because they want to contain fleet owing costs and prevent unforeseeable costs at the expiry of lease. The predictability helps in the financial planning especially when we are dealing with a large fleet with a standardized vehicle replacement period.
   
• Closed-ended contracts are incorporated in full-service leasing which combine services of maintenance, insurance, tires and roadside services. This end-to-end solution makes vehicle lifecycle management easy, and it also lowers administration. Lessors market closed-ended designs as turnkey mobility systems, strengthening its usage with corporates who are primarily concerned with operational efficiency.
   
• Closed-ended leasing facilitates the use of EVs and low-emission vehicles by protecting lessees against obsolescence in technology and unpredictable resale prices. With the quickening of the electrification process in Europe, more customers prefer closed-ended leases as the effective way to avoid the long-term asset risk and take advantage of incentives and bundled charging options.
   
• Closed-ended leasing also helps in standardization of fleet policies by providing homogenous terms of contract in all vehicles and geographies. Corporates enjoy an easier process of contract administration, uniforms in reporting and compliance checks. This is a very useful operational simplicity to multinationals which operate large cross-border European fleets.
   
• Professional lessors have superior remarketing avenues throughout Europe which allows effective resale of off-lease vehicles. The residual value forecasting is accurate due to their scale, data analytics, and cross-border sales networks. This is a strength of remarketing which supports viability of closed ended leasing and enables competitive pricing of lessees.
   

Germany dominated the car leasing market in Western Europe with around 27% share and generated USD 18 billion in revenue in 2025.
 

• The expansion of leasing in Germany is pegged on a widely rooted company car culture. Leased vehicles are also utilized as employee benefits and operating resources by corporates and SMEs. Leasing is the most appropriate acquisition method due to favorable tax treatment, standardized fleet policies and high new-vehicle turnover which leads to constant high leasing penetration in passenger and light commercial vehicles.
   
• Germany has the strongest OEM captive leasing units in Europe consisting of Volkswagen Financial Services, BMW Financial Services and Mercedes-Benz Mobility. Such captives are based on brand recognition, low lease rate, and good management of residual value. Ecosystems of integrated sales, financing and aftersales strengthen the adoption of leasing in dealerships across the country.
   
• Germany enjoys the advantages of a developed full-service leasing ecosystem with maintenance, insurance, telematics, and analytics of the fleet. The adoption of fleet management by professional lessors by corporates is on the rise in order to lessen administrative load and enhance cost control. This operational complexity endorses mass adoption of leasing in domestic and trans-boundary corporate fleets.
   
• The aggressive emission levels and corporate sustainability strategies by Germany are increasing the adoption of EVs via leasing. Leasing helps in eliminating battery depreciation risk and technology uncertainty and unlocking incentives and charging solutions. With companies invested in reducing carbon, leasing has been the main avenue of transitioning to EV fleets.
   
• High priced cars in Germany make leasing more attractive than ownership. Leasing enables firms and individuals to acquire new vehicles at a low cost without capital expenditure during cash flow maintenance. The leasing presents predictable monthly payments and handling of operating expenses with the increasing vehicle and financing prices.
   
• The big and liquid used-car market of Germany helps in maintaining stable residual values, which enhances leasing economics. The presence of high demand of off-lease vehicles locally and in the export markets enhances efficiency in remarketing by the lessors. This value residual confidence makes it possible to price leasing competitively and continue to grow leasing in the long-term in the German market.
   

The Poland car leasing market is projected to exceed USD 1.3 billion in 2025, driven by a rapidly expanding SME sector and increasing business formalization.
 

• As enterprises scale operations, leasing offers capital-efficient access to vehicles without large upfront investments. SMEs increasingly prefer leasing over bank loans to preserve cash flow, supporting strong demand for passenger and light commercial vehicle leasing nationwide.
   
• The leasing penetration of vehicles is lower in Poland as compared to Western Europe. The increase in vehicle prices, stricter credit availability and increased awareness of the benefits of leasing is driving quicker adoption. This under penetration has left Poland in a lot of catch-up growth which has left it as one of the most rapidly expanding car leasing markets in Europe.
   
• The strategic position of Poland and the growth of logistic industry drive demand of vehicles on lease. The e-commerce and warehousing developments, as well as the transportation across the border, will augment fleet needs with vans and passenger vehicles. Leasing also allows the logistics operators to scale its fleet faster without absorbing costs and this has led to long-term growth in corporate and SME leasing demand.
   
• The Polish market is becoming more mature because of the entry and growth of the international leasing firms and OEM captives. The standardized contracts, full-service leasing, and competitive pricing are brought by these players. They enhance customer confidence in leasing and stimulate adoption in corporate, SME and professional service segments.
   
• The slow rate of electrification in Poland augers well with leasing development in the ICE and hybrid vehicles. Leasing will enable businesses to go with newer more efficient vehicles without making full EV transitions. Such a moderate strategy maintains the leasing demand and infrastructure and incentive systems keep developing.
   
• Favorable tax deductibility of lease payments and VAT treatment of business users benefit leasing in Poland. Companies are able to see their operating costs when the payment is made on a predictable basis on a monthly basis. These financial and budget benefits inform leasing as a good alternative to ownership, and this supports the development of business in Poland in the long term in car leasing.
   

The car leasing market in UK is projected to grow at 7.2% CAGR from 2026 to 2035. UK has one of Europe’s most mature leasing cultures, with Personal Contract Hire and corporate leasing widely accepted across private and business users.
 

• The benefit-in-kind taxation in the UK favors the low-emission and electric cars highly thus leasing forms a viable route towards corporate implementation. Leasing also enables employers to provide tax-effective company cars with minimum capital outlay. These incentives contribute greatly to the acceleration of leasing volumes of fleets, especially EVs and plug-in hybrids.
   
• The digital leasing and broker infrastructure is highly developed in the UK, which facilitates the fast development of the market. Online platforms are a combination of offers, better price transparency, and facilitate the execution of the contract. This digital-first competitive environment is bringing entry barriers down to consumers and SMEs in the sector, increasing leasing adoption beyond dealership-led platforms.
   
• The increase in automobile prices and interest rates would not make outright ownership attractive to UK consumers. Leasing separates the cost into monthly manageable payments and eliminates the risk associated with depreciation. This low-cost factor has aided high demand of personal leasing especially in the compact and the mid-size automobiles in the urban and suburban markets.
   
• Fleet management is becoming an outsource to professional leasing service providers that offer full service to the UK corporates. Assistance of maintenance, insurance and compliance are integrated to decrease the administration load and enhance the cost management. This changes the trend towards managed leasing, making long-term contracts and higher average lease values within corporate fleets.
   
• The shift in vehicle ownership to usage-based mobility is being brought about faster by changing consumer attitudes, urbanization, and flexible work patterns. Leasing conforms to this need by providing flexibility, low replacement cycles, and bundling. The leasing models, that mirror the subscription style, also widen demand among younger customer segments, with mobility as a crucial consideration.
   

The car leasing market in Italy is projected to grow at a CAGR of 9.5% from 2026 to 2035.

• Italy’s economy is dominated by SMEs and professional service firms that increasingly adopt car leasing to preserve capital and improve cash flow. Leasing enables access to modern vehicles without heavy upfront investment, supporting business mobility needs across sales, service, and logistics functions, and driving steady growth in corporate and business car leasing demand.
   
• Major cities in Italy such as Milan, Rome and Turin have put limits on traffic and low emitting zones. Leasing enables individuals and companies to change vehicles regularly so as to keep abreast with the changing regulations. This vehicle replacement cycle caused by the regulation boosts the leasing demand, especially the compact, low emitting, and hybrid vehicles.
   
• The traditional ownership-based Italian consumers are gradually adopting mobility solutions that are based on usage. Leasing will be an affordable option due to the escalating vehicle prices, insurance fees, and maintenance charges. Consistence in monthly payments and flexibility will appeal to both personal and business customers, enabling them to grow in the long term in personal and business leasing markets.
   
• This trend among the Italian companies is to outsource fleet management to full-service leasing companies. Maintenance, insurance, and fleet administration are bundled to make the system less complex and enhance the cost visibility. This trend of moving towards managed leasing solutions is especially high within the middle-sized enterprises that want their operations to be efficient and their fleets to be managed professionally.
   
• Rental-backed and subscription-style leasing models will be promoted by the strong markets of tourism and urban mobility in Italy. The flexibility of leasing attracts short-term and seasonal leasing, and younger consumers. These models boost the rate of vehicle usage and also broaden the use of leasing other than long term contracts.
   
• One of the things that encourages leasing in Italian companies is the favorable tax deductibility of lease payments and recovery of VAT on business vehicles. Leasing is economical in terms of financial records and budgeting. This set of tax incentives along with the operating leases design makes leasing an ideal vehicle acquisition tool throughout the Italian business environment.
   

 Europe Car Leasing Market Share

• The top 7 companies in the Europe car leasing industry are Ayvens, Arval, Leasys, Alphabet, Athlon, Sixt Leasing, and Europcar Mobility, collectively accounting for approximately 36% of the market in 2025.
   
• Athlon is a key mobility service deliverer in Europe and a subsidiary of a prominent car giant operating in several major European countries. The company is concentrated on offering sustainable fleet management and mobility solutions and uses its car giant experience in accessing state-of-the-art car technology solutions for a smooth transition to e-mobility solutions. The company provides a wide array of services including conventional leasing solutions, maintenance services, insurance solutions, fuel solutions, and new-age solutions for car infrastructure solutions, analytics solutions for mobility, and new-age transport solutions for corporations based on modern transport requirements
   
• Sixt Leasing stands out as a prominent player in the field of fleet leasing services in Europe. The company enjoys recognition due to its strong digital focus and flexible customer services. Sixt Leasing finds a direct nexus in the context of the Sixt mobility ecosystem. The company provides a range of services including traditional leasing services, fleet solutions, and new-age mobility services in the form of subscriptions and transportation solutions. Sixt Leasing enjoys synergy effects created by the Sixt brand in the realms of its car rental, ride-sharing, and digital mobility services.
   
• Ayvens represents a very large car leasing business operation in Europe. The firm resulted from the merger between two of the largest players in the car leasing industry. The resulting business thus takes advantage of the expertise of the two merged companies and provides a comprehensive range of mobility services ranging from leasing to managing fleets and even the latest mobility services used in the leasing of electric cars and the provision of digital fleet management. Ayvens takes advantage of the expertise of its preceding firms and provides a comprehensive mobility solution to both the multinationals and the SMEs in Europe. Among the predecessors of the firm includes a business with expertise in the corporate management of fleets.
   
• Leasys is a major European mobility player and a subsidiary of a big car manufacturer. The organization relies on its car-manufacturing roots to provide a wide range of leasing and mobility offers. It capitalizes on synergies in car purchasing and residual value, securing new technological developments in the car industry. The organization operates through its brands focused on mobility, providing customers with car leasing solutions, car rental, and subscriptions in response to the dynamic nature of car use and changing consumer behaviors
   
• Arval is a major player in the European full-service car leasing and fleet management market, thanks to the financial resources it gets from its banking group parent. The firm possesses a significant presence in a variety of markets and boasts expertise in the field of corporate fleet and mobility. The banking background of the firm allows it to avail itself of superior financing schemes and risk management support, resulting in the design of flexible contracts. Arval combines the financial and auto domains to provide its customers with a full range of services, including fleet management, maintenance, insurance, fuel cards, and the latest mobility solutions such as EV charging and subscription services for firms.
   
• Alphabet is a leading European fleet manager and lessor with a solid market presence in major European countries and is renowned for its technology-based approach to mobility. Unlike other lessors that are focused on traditional leasing, Alphabet is emphasizing data analysis, digital technologies, and sustainability to improve fleet performance and minimize total cost of ownership. In fact, it offers a broad range of services such as purchasing, managing, financing, fuel, and advanced services such as telematics systems, charging infrastructure for electric vehicles, and data-based mobility analysis.
   
• Europcar Mobility is one of the leading European mobility solution providers that encompasses all possible services like car rental business, fleet management for companies, long-term leasing, and new age mobility solutions. With such a vast network setup and range of vehicles available in their fleet, they cater to both business and private customers as per their requirements to meet changing demands for transportation. At Europcar, their business model encompasses short-term as well as long-term mobility offers through digital platforms for convenient transitions between renting, sharing, or subscribing to cars.
   

Europe Car Leasing Market Companies

Major players operating in the Europe car leasing industry are:

• Alphabet
• Arval
• Athlon
• Ayvens
• Business Lease
• Europcar Mobility
• Free2Move
• Hertz Lease
• Leasys
• Sixt Leasing
   
• The European car leasing market is an established, mature, and sophisticated market, which has been driven primarily by its robust automotive manufacturing sector, favorable financing options, and increasing demand for flexible mobility solutions. Major Western European markets, including Germany, the United Kingdom, France, and the Netherlands, currently account for a major share in this market due to a significantly high adoption rate in the corporate sector, robust infrastructure, and supportive government regulations. Central and Eastern European markets, however, are also growing steadily as increasingly more firms and individuals turn to leasing as a financially optimal solution compared to ownership.
   
• However, the industry is simultaneously experiencing a dramatic shift in line with sustainability requirements, the advent of electric vehicles, and digitalization. The widespread use of electric and hybrid cars, as well as the leasing by subscription model, is resulting in a shift in customer behavior. However, the industry is investing in digital solutions that will enhance contract management, predictive maintenance, and telematics integration. However, in the midst of the current turmoil of regulatory differences, risks of residual value, and the overall impact of the economy, the car leasing industry in Europe is finding its way forward via technological shifts and partnerships, which makes the industry a prime facilitator of the journey towards a sustainable future in Europe.
   

Europe Car Leasing Industry News

• In November 2025, Ayvens and Omoda/Jaecoo signed a Memorandum of Understanding (MoU) to jointly provide vehicle leasing services in the European market. This collaboration aims to provide white-label full-service leasing solutions for customers through the Omoda/Jaecoo dealership network. This service will be initially provided under the brands of Omoda and Jaecoo to customers in Germany, France, Italy, Netherlands, Belgium, Poland, and Luxembourg. These services will be provided for SMEs, Professionals, and Private Customers.
   
• In October 2025, KBC consolidates its position in Central Europe by acquiring Business Lease in Czech Republic and Slovakia. Through this strategic move, KBC Group will be able to expand its leasing business in Central Europe to a large extent.
   
• In April 2025, Ayvens makes a public announcement related to the extension of their partnership with BYD, providing full-service leasing to corporate clients, as well as the distribution of lease white labeled operational leasing services for SMEs and private clients, in Greece, Hungary, Portugal, Finland, Ireland, Romania, and Sweden. This will be based on Ayvens' leadership market expertise within full-service leasing, along with the experience that BYD has with electric vehicle manufacturing.
   
• In October 2024, Carwow acquired Gridserve Car Leasing. The acquisition is part of Carwow’s plan to “rapidly-accelerate” in the car changing market on the web, with a focus onEVlease deals.  So, Carwow Group’s second merger in 2024 has been in the automobile industry after acquiring Autovia, an automobile content and commerce media company in 2024.
   

The Europe car leasing market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and fleet size (Units) from 2022 to 2035, for the following segments:

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Market, By Vehicle

• City Cars
• Superminis
• Compact Cars
• Mid-size Cars
• Executive Cars
• Luxury Cars

Market, By Propulsion

• ICE
• EV

Market, By End Use

• Private leasing
• Company leasing

Market, By Leasing

• Open ended
• Close ended

Market, By Service Providers

• Automotive manufacturers and dealerships
• NBFC’s
• Independent leasing companies
• Online leasing platforms
• Credit unions and cooperative leasing programs
• Automotive rental companies
• Others

The above information is provided for the following regions and countries:

• Western Europe
  • Germany
  • France
  • Netherlands
  • Belgium
  • Switzerland
  • Austria
  • Luxembourg
  • Portugal
• Eastern Europe
  • Poland
  • Czech Republic
  • Slovakia
  • Romania
  • Slovenia
  • Bulgaria
  • Hungary
  • Croatia
• Northern Europe
  • UK
  • Denmark
  • Sweden
  • Norway
  • Finland
• Southern Europe
  • Italy
  • Spain
  • Greece
  • Bosnia and Herzegovina
  • Albania