Is Car Rental Industry Accelerating in India?
🔍Insights
Just like other industries, the Covid-19 recession has crushed the travel and tourism industry and thus affected the car rental market in India. But with the increase in the vaccination drive and return to normalcy, the industry witnessed a surge in its service.
The car rental market is projected to reach US$1,973m in 2021 and is expected to show an annual growth rate (CAGR 2021-2025) of 12.38%, resulting in a projected market volume of US$3,147m by 2025, as per the reports of Statista.
Here's what you need to know about the car rental industry in India.
Arrival of Technology-based Car Rental Services
Advantages of Car Rental
Major Players in the Car Rental Industry
Conclusion
FAQs
Arrival of Technology-based Car Rental Services
These days, it has become convenient for people to book or rent a car from anywhere via technology-enabled online car rental services that can be accessed with just a touch or tap of a button.
Today, everyone owns a smartphone and accessing such services seem as easy as pie. There are just three steps: Pick, check availability, book the car, and it's done. Amidst the use of technology tools in one’s car rental business, the rental service option is holding rich potential for expanding services and improving access for many users all-round.
However, such online platforms have managed to speed up the growth of the Indian car rental industry and have also enabled several offline service providers to upgrade their business model and more importantly by following the digital route.
Advantages of Car Rental
1. Easy Access
With being the most eminent in the travel industry, Car Rentals offers the best automobile options based on customers’ requirements. From travelling to another city to being a part of a business meeting, car rental services surpass all expectations.
2. Liberty from repair and maintenance
The biggest advantage that rental cars have attained over personal cars is perhaps the relaxing guidelines for repair and maintenance. Most car rental companies have a basic protocol in case of any accidental damages caused to their vehicles by the customer, which involves the advance security deposit or minimal charges.
3. Cost-effective
Relatively speaking, the rental car industry is the economic hub, because of its dominance over personally owned cars, especially when it comes to being pocket-friendly. The travelling option is cost-effective allowing the customers to save more, at the same time offering a hassle-free experience.
4. Elasticity in vehicle hire option
A typical hatchback car can fit just 5 people. However, car rentals could be the best choice when it comes to travelling in a larger group. The majority of the car rental service providers allow the users to pick personalized cars as per their travelling needs. Although some have an in-house team of dedicated experts to assist customers to make a better selection of a vehicle based on their individual requirements.
Souvik Dey
Major Players in the Car Rental Industry
Myles
Myles was founded in 2013 by Sakshi Vij. It is a leading self-drive car rental service provider in India. The cars offered by Myles range from economical hatchbacks to SUVs.
ZoomCar
ZoomCar is a car rental company that also started its journey in the year 2013. It allows the user to rent cars on an hour, day, week, and monthly basis. ZoomCar is headquartered in Bangalore and has spread its services in Pune, Delhi NCR, Mumbai, Chennai, and Hyderabad.
Dev Gupta
Conclusion
The car rental industry has started accelerating in India amid the Covid-19 pandemic itself. The continuous upscaling of India's vaccination drive and return to normalcy has fueled the demand volume of rental vehicles. People are getting more confident to step out of their homes and travel. The industry is expected to reach the pre-Covid-19 situation soon.
FAQs
What type of business is a car rental company?
A car rental company is a type of business that leases cars for a shorter duration of time like a few hours or a few weeks.
How much does it cost to rent a car in India?
On average, a rental car in India costs â‚ą2000 per day.
Is the car rental business profitable in India?
The car rental business in India can be quite lucrative and profitable if you learn what steps should be taken in order to maximize your odds of success.
Can I give my private car for rent?
Yes, you can give your car on a rent basis to the companies.
How big is the car rental industry?
The car rental market is projected to reach US$1,973m in 2021 and is expected to show an annual growth rate (CAGR 2021-2025) of 12.38%, resulting in a projected market volume of US$3,147m by 2025, as per the reports of Statista.
Who are the major players in the car rental industry?
The major players in the car rental industry are as follows:
- ZoomCar
- Myles
- AVIS
- S.s. Travels
- Ola Rentals
- Uber Hire
- Eco Rent A Car
- Sixt
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