India Car Rental Market Overview, 2028

India Car Rental Market Overview, 2028

India Car rental companies are businesses that rent out automobiles for a set period of time at a set price. Due to population growth, the Indian car rental industry has undergone a dramatic transformation in recent years, becoming one of the most prominent sectors in fleet transportation. Consumers and manufacturers work together to create cost-effective rental schemes, such as leasing cars from their owners for three years and offering them for lease through an app-based booking system. Furthermore, as online car bookings grow in popularity, car rentals are becoming the most convenient and cost-effective mode of transportation. Car rental businesses in India share characteristics such as being unregulated, transactional, low margin, and operationally efficient. Zoomcar, Carzonrent, Myles, and Ola Rentals are among the online car rental companies that have gained significant traction in this space. With specific use cases and vehicle categories, new entrants have the opportunity to build a strong vehicle/car rental start-up. Self-drive cars are now available in the majority of India's major cities. Immediately, the major revenue sources are Delhi (NCR), Bangalore, Mumbai, Pune, Hyderabad, and Chennai. In India, the car rental industry is highly unorganized. Many companies are transitioning from the traditional chauffeur-driven car rental model to self-driving.

According to the research report, India Car Rental Market Overview, 2028, published by Bonafide Research, the market is anticipated to add USD 2.53 billion by the end of 2028. Economy cars had the largest market share in the car rental market. One of the most important factors to consider when renting a car is its fuel economy; as it has an impact on operating expenses. Most market participants prefer economy cars for car rental services due to their low maintenance and procurement costs. Furthermore, economy cars are compact in nature and provide adequate comfort to the passengers. A significant increase in the number of people travelling for business and pleasure across the country is fueling demand for car rental services and propelling the industry's growth. Employees travelling to Mexico for business purposes increase demand for Mexico car rentals to familiarize themselves with locations and business details. Rising internet penetration across developing as well as developed countries has further helped companies in the market capture a larger customer base with the help of dedicated mobile apps for the convenience of customers. The availability of a wider range of car types for rental purposes, such as SUVs and MUVs, boosts demand for Mexico car rentals. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the Mexico car rental market.

Car rental and leasing are important sectors of the Indian transportation industry. Furthermore, when compared to the rest of the Indian car rental market, the organised car rental and leasing market is still quite small. Independent market players typically acquire the remaining share, which is typically restricted to metropolitan areas. Rapid urbanization and the increase in foreign and domestic travelers in the country, have contributed to the industry's growth. India's poor public transportation system and widespread smart phone penetration present significant opportunities for the development of car-rental services. There has been a strong correlation between GDP growth and that of the transportation industry in recent decades. In comparison to overall GDP growth, the road transport sector experienced nearly 8.8 percent annual growth over the last decade, outpacing overall GDP growth of 7.6 percent. On top of that, the Indian government has taken steps to reduce private vehicle ownership systemically. Taxes on private car ownership or restrictions on license distribution are two examples.

Millennials, who form the largest demographic of the country, are primarily responsible for the expansion. The Indian population is younger than 30; young adults prefer to rent a car to drive intercity for weekend getaways rather than own one. Because of the high cost of maintaining personnel vehicles, millennia’s own fewer cars. Many people are attracted to car rentals because of their cost-cutting and fuel-saving benefits. As a result, demand for car rentals in India has risen, primarily for leisure and short-term trips. India's highway network has grown from 1,32,500 km. It demonstrates India's improved pan-Indian connectivity. It is necessary for driving enthusiasts to have easy and affordable access to rental cars in order to explore India's unexplored places. It's a term that would have been unheard of even a few decades ago, but it's now emerging as a new recreational option for families.

Car rentals and ridesharing services, in general, require three parties to function: drivers, passengers, and service providers. Smart phones with internet access are used to connect riders and drivers, estimate and calculate fares, and accept payments. A smart phone with GPS and an active internet connection are required for a driver to accurately locate the pickup or drop-off locations of customers. Not all regions of the country have the technological development required to support this.

Considered in this report
• Geography: India
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• India Car Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By car Type
• Luxury car
• Executive car
• Economy car
• Sports utility vehicle (SUV) car
• Multi utility vehicle (MUV) car

By application Type
• Leisure/Tourism
• Business

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to car rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.