South Korea Car Rental Market Overview, 2028

South Korea Car Rental Market Overview, 2028

The car rental market in South Korea is a well-developed industry, serving both domestic and international travelers. South Korea is a popular tourist destination and has a strong economy. Car rental companies, also known as car hire companies, provide short-term, fixed-price rentals. This service is frequently structured with a number of regional offices, typically located near airports or busy urban areas, as well as a website that allows for online reservations. The car rental industry has undergone significant transformation as a result of increases in pollution and population over the last several years, and it is now one of the most important segments in fleet transportation. Manufacturers and consumers alike rely on a variety of cost-effective car rental schemes, such as leasing cars from their owners for three years and then renting them out through app-based reservations. One-way car rentals in Korea The majority of major car rental agencies in Korea offer one-way rentals. When renting a car for a single trip, pick it up and return it in different locations. In most cases, the car rental company will charge an additional fee to return the vehicle at a different location. The terms and conditions will state whether or not the one-way fee is included in the rental price. The one-way charge is not included in the rental price; it must be paid directly to the car rental agent upon arrival.

According to the research report, South Korea Car Rental Market Overview, 2028, published by Bonafide Research, the market is anticipated to add USD 0.86 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, because it has an effect on operating costs. Because of the low maintenance and procurement costs, most market players prefer economy cars for car rental services. 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 South Korea for business purposes increase the demand for South Korea car rentals in order to become acquainted with the location 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 South Korean car rental. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the South Korean car rental market.

For the first time, two of the world's leading car rental companies are expanding into South Korea. Enterprise Holdings announced an agreement with Korea First Rent a Car to open new franchise locations offering Enterprise Rent-A-Car and Alamo car rental services. In April 2023, Enterprise Rent-A-Car and Alamo will open branches in South Korea. Tamra rents cars in South Korea for as little as €48.90 per day for a standard-class car. The average cost of hiring a car in South Korea is €126.60 per day, with the most expensive hire car in South Korea being a Hyundai Starex from Avis at €278.80 per day. Jeju International Airport is the most popular place to rent a car in South Korea, with two car rental companies and 15 vehicles to choose from. Tamra Rent is South Korea's cheapest car rental company, offering a standard-class car like the Hyundai Sonata for as little as €342.30 per week.

South Korea's second-largest auto rental firm, SK Rent-a-Car, purchased approximately 4,200 electric vehicles in 2021 and plans to absorb a much larger portion of the country's total green vehicle sales in the coming years. Many car rental companies in Korea offer a wide range of vehicles, from small cars to large SUVs. Rentalcargroup.com has made it simple by simply filter the results and look for an SUV and will see all the SUVs available. Also, the SUV is guaranteed 4x4; not all SUVs are guaranteed 4x4. Rentalcargroup.com has a large selection of station wagons and minivans in Korea.

This is one of the fastest-growing markets for smart transportation services. The key players' adoption of car rental software provides the market with excellent future prospects. Improving mobile car rental apps is a critical factor in global market growth. Car rental software boosts the market's efficiency. Other benefits of using this include simple fleet optimization, cost management, and custom reports. Adoption of car rental software creates significant market growth opportunities. One of the most difficult challenges that car rental companies face is providing superior customer service. Lack of information on payment options, long booking times, and car availability are all factors that can stymie demand in the car rental market. The dire need for technology to overcome challenges has resulted in the development of mobile software and various mergers between car manufacturers and car rental companies in order to increase the number of cars. In the near future, such developments will determine the value of the car rental market.

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

Aspects covered in this report
• South Korea 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, analysing 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.