Vietnam Car Rental Market Outlook to 2027F

Vietnam Car Rental Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of Car rental industry in Vietnam. The report covers an overview and genesis of the industry, market size in terms of number of cars rented.

Its market segmentations include by Type of Booking, by Car Type, by Purpose; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, due to the impact of COVID-19, there has been a decrease in tourism resulting in a reduction in demand for car rentals and car rental prices in Vietnam. The Vietnam car rental market is expected to grow at a 16.7% CAGR during 2022-2027F, driven by Increasing Internet Penetration Rate, Tourism and Urbanization.

Many cars rental companies in Vietnam have started to shift towards online booking systems to make it more convenient for customers to rent cars. This has made it easier for customers to compare prices and find the best deals.

In 2027F, Hatchbacks will be the most preferable type of car contributing half the market share in Vietnam car rental market.

Key Trends by Market Segment:

By Car Type

In 2022, hatchbacks dominated the car rental market with two fifths market share in Vietnam Car Rental Market. Sedans are more fuel-efficient and offer spacious interiors, SUVs boast of ample cabin room and are perfect for driving on untarred roads and inclement weather conditions due to their powerful engine. Hatchbacks are often roomier than a mid-sized sedan and can navigate through city streets, squeeze into small parking spaces and offers a combination of elegant designs and huge versatility.

By Purpose

In 2022, Ho Chi Minch City was the most popular destination for leisure purpose in Vietnam car rental market. In 2022, Ho Chi Minh City was the most sought-after destination by domestic tourists, the second was Phu Quoc – the focus of summer tourism. Followed by destinations such as Hanoi, Da Lat, Nha Trang, Da Nang, Vung Tau, Quy Nhon, Hue, and Phan Thiet.

Competitive Landscape

The market is in a growing stage, the growth in the market is relatively slow. This can be due to high deposit fees and the hassle of contracts. Vietnam car rental market is highly fragmented with many small players present in the market. The Competition Parameter are Key Services, Average Ticket Size/km, Business USP and Service Portfolio among players. Popular car brands in Vietnam car rental market are Toyota, Ford and Kia providing airport pick and drop facilities. Major Players in the Vietnam car rental market are as follows;

Future Outlook

During the forecast period of 2022-2027, it is anticipated that Vietnam car rental market will grow at a CAGR of 16.7%. Leisure customer will remain the largest market by traveler type and it is also expected to witness the highest growth during the forecast period due to the rise in air travel and increasing domestic tourism. In 2027F, it is forecasted that car rental and ride hailing market will generate the maximum revenue.

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