Europe Car Leasing Market Size

Europe Car Leasing Market Size

The Europe car leasing market size was valued at USD 28 billion in 2023 and is projected to grow at a CAGR of 6.1% between 2024 and 2032. The growth of the market can be attributed to the growing transition towards electric vehicles (EVs) and the rising availability of broader range of EV models in the region.

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According to statista, in 2023, there were around 371 BEV models available for buyers in Europe as compared to 253 BEV models in 2022 . This was an increase of 46.6 percent compared to the available models recorded in 2022. Leasing provides an attractive solution for customers hesitant purchase EVs due to concerns about future technology or depreciation.

European governments are offering incentives, such as tax benefits and subsidies, for leasing electric and hybrid vehicles to promote eco-friendly transportation. For instance, in April 2022, Poland's state-owned National Fund for Environmental Protection and Water Management allocated  USD 125 million for subsidies for EV buyers.

The program is aimed at reducing air pollutant emissions by decreasing consumption of fossil fuels in transport, mainly through co-financing purchase or leasing of zero-emission vehicles. This is further supported by strict emissions standards across the region. Furthermore, various European countries are implementing regulations that require companies to incorporate more low-emission vehicles in their fleets, further fueling leasing demand.

Leasing and shared mobility services provide urban residents with crucial flexibility, especially when daily car use is unnecessary. Many city dwellers rely on public transportation for their regular commutes but choose to lease or rent vehicles for occasional trips. This method allows them to access a car only when needed, avoiding the financial burden of ownership.

Leasing helps users avoid the significant depreciation associated with car ownership and reduces concerns about maintenance and insurance expenses. Typically, leasing agreements cover maintenance and repairs, which is beneficial for those lacking the time or space to handle these tasks. In shared mobility, users eliminate maintenance and upkeep costs entirely, focusing solely on short-term vehicle use.