India Car Rental Market Report 2021-2026 with Zoomcar, Ola, Revv, Myles, Eco Rent a Car, Avis

DUBLIN, November 24, 2021– (COMMERCIAL THREAD)–The “India Car Rental Market – Forecast 2021-2026” the report was added to ResearchAndMarkets.com offer.

The Indian car rental market is expected to grow at a CAGR of 9.83% to reach US $ 2.030 billion by 2026, from US $ 1.053 billion in 2019.

Car rental companies are companies that rent cars for a specified period of time at a specified price. The car rental industry has undergone a radical transformation in recent years due to population growth, becoming one of the most important sectors of fleet transportation.

Consumers and manufacturers run different rental programs that are profitable, like renting cars for three years to their owners and offering them for rent through an app-based reservation system. Moreover, as online car booking continues to grow, car rental is becoming more and more popular as the most convenient and economical form of transportation. The car rental market can grow exponentially because of these benefits.

Car rental companies in India are characterized by similar characteristics such as unregulated, transactional, low margins and operational efficiency. Several online car rental companies have grown in popularity in this space, including Zoomcar, Carzonrent, Myles, and Ola Rentals. New entrants have the opportunity to build a strong vehicle / car rental start-up with specific use cases and vehicle categories.

Among the fastest growing segments of India’s transport industry are car rental and leasing. In addition, the organized car rental and leasing market is still quite small compared to the rest of the Indian car rental market. Independent market players acquire the remaining share which is usually limited to metropolitan cities.

In addition, the growth of foreign and domestic travelers to the country as well as the increase in the consumer base for the car rental industry due to rapid urbanization have contributed to the growth of the car rental industry. rental. India’s poor public transport system and widespread smartphone penetration offer great potential for expanding car rental services. In recent decades, there has been a strong correlation between GDP growth and that of the transportation industry.

Relative to overall GDP growth, the road transport sector has experienced an average annual growth of nearly 8.8 percent over the past decade, exceeding overall GDP growth by 7.6 percent. On top of all this, the Indian government itself has taken steps to systematically reduce the number of private vehicle owners. Examples are taxes on the possession of passenger cars or restrictions on the distribution of licenses.

GROWTH FACTORS:

Increase in Generation Y population:

Generation Y, which is becoming the largest demographic group in the country, is primarily responsible for growth. The average age of India’s population is under 30, and young adults prefer to rent a car to drive between cities for weekend getaways rather than owning a car. The high cost of maintaining staff vehicles has led to a drop in car ownership rates among millennials. Due to its cost saving and fuel saving benefits, many people are drawn to car rental. As a result, the demand for car rental in India has increased mainly for recreation and short trips.

Improved connectivity:

The road network in India has grown by 1,32,500 km. This is a testament to India’s improved pan-Indian connectivity. In order for driving enthusiasts to explore the unexplored places of India, it is necessary to have easy and affordable access to rental cars. It is a term that we would hardly have heard about twenty years ago and which is now emerging as a new recreational avenue for families.

Tourism growth:

The government has focused on improving the tourism sector in recent years. The budget funds allocated to the Ministry of Tourism for 2021-2022 are Rs. 2,026.77 crore. Growing tourism budgets and flourishing tourism activities have helped propel the growth of the rental car market. Compared to tour packages, most travelers now prefer being able to see the world at their own pace and at their own pace, which is possible by hiring rental cars.

Technological advances:

Technological advancements will increase market growth in the long run. Information technology has transformed the industry and enabled service providers to provide better products and services to their customers. This includes integrating customer information management with the development of convenient online booking applications.

CONSTRAINTS:

Limited to urban areas:

In general, car rental and ridesharing services require three parties to function: drivers, passengers and service providers. Smartphones with Internet connectivity are used to match passengers with drivers, estimate and calculate fares, and process payments. In order for a driver to accurately locate the pick-up or drop-off locations for customers, they must have a smartphone with GPS and an active Internet connection. Not all parts of the country have the technological development to support this.

COVID-19 in the Indian rental car market

Travel restriction: The global COVID-19 pandemic has devastated economies around the world, hitting hotel businesses, airlines and transportation services particularly hard. A rapid spread of COVID-19 is simultaneously affecting the travel and tourism industry as well as the car rental market. Due to restrictions on travel around the world to contain the spread of the virus, the demand for rental cars at airports has declined due to the reduction in global air traffic.

Hesitation for big investments: COVID-19 has revealed the need to use personal mobility rather than public transport. The pandemic has also brought down the economy, making it less attractive for people to invest in cars. Renting a car is convenient here. Instead of the long-term expenses of owning a car, short-term mobility options are preferred. The rental of a car for personal use and for emergencies has increased significantly.

Company Profiles

  • Zoomcar

  • Ola

  • Revv

  • Myles

  • Eco Rent a Car

  • Opinion

For more information on this report, visit https://www.researchandmarkets.com/r/uxyw2i

See the source version on businesswire.com: https://www.businesswire.com/news/home/20211124006122/en/

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Pamela W. Robbins