1 month ago
Avis India plans ₹550 crore FY27 capex
Avis India, a company that rents and leases cars, is planning to spend a lot of money (₹550 crore) in the next financial year to buy more cars.
They want to make more money (₹700 crore) by renting and leasing these cars to companies and people.
They already have about 12,000 cars and are adding more because many companies want to lease cars instead of buying them.
They are also thinking about adding electric cars, but they are not sure yet because electric cars are more expensive and might not be used as much.
Avis India is doing well and wants to keep growing.
Avis India plans to increase capital expenditure to ₹550 crore in FY27, a 175% rise from FY26.
The company aims to achieve a 31% increase in revenue to ₹700 crore in FY27.
Avis India operates a fleet of 12,000 vehicles, with 3,000 in rental and 9,000 in leasing.
The leasing fleet has expanded by 45% since January 2025, driven by corporate demand.
Avis India is cautious about EV adoption due to lower utilisation rates and uncertain residual values.
- Who
- Avis India, a joint venture between Avis Budget Group and The Oberoi Group
- What
- Plans to increase capital expenditure to ₹550 crore in FY27 and target ₹700 crore in revenue
- Where
- India, with operations in 20 cities for rentals and 70 cities for leasing
- When
- FY27
- Why
- To expand its fleet and capitalize on the growing corporate mobility market
Expansion Strategy
EV Adoption
Fleet Expansion
Expansion Strategy
Avis India is significantly expanding its fleet through a ₹550 crore capex plan for FY27, targeting a 31% increase in revenue to ₹700 crore.
EV Adoption
Avis India is cautiously approaching EV adoption due to lower utilisation rates and uncertain residual values.
Key facts
- Capital Expenditure (FY27)
- ₹550 crore
- Revenue Target (FY27)
- ₹700 crore
- Current Fleet Size
- 12,000 vehicles
- Leasing Fleet Expansion
- 45% increase from January 2025
- Corporate Mobility Market Size (India)
- $2 billion (expected to reach $10-12 billion by 2031)
- Debt-to-Equity Ratio
- 1.6
- Major Rental Fleet Models
- Toyota Innova Crysta, Honda City, Mercedes-Benz E-Class
- EV Adoption Status
- Slow due to lower utilisation and uncertain residual values
Quotes
Aman Naagar
Managing Director, Avis India
“"Last year, our capex was ₹200 crore. This year, it will be close to ₹550 crore."”
thehindubusinessline.com











