Self Drive Car Rental Market In India is Projected to Grow at CAGR of 35% in terms of Revenue: Ken Research
According to Research analyst of Ken Research The market for self drive car rental has come into existence in India during 2010 with only 2,621 cars being served on self driven basis.
According to Research analyst of Ken Research The market for self drive car rental has come into existence in India during 2010 with only 2,621 cars being served on self driven basis. Since FY’2013, the market for self driven cars in India has observed emergence of global players such as Avis Global, Hertz and several others, which fueled the market growth. In addition to this, rising urban population, growth in personal disposable income, growing preferences towards car travels for long distance leisure trips has further provided spurt to the market growth.
Self-drive car rental market has brought advantages such as customized approach and choose vehicle of own choice, privacy, cost benefits in terms of saving on driver expenses and others which has helped it gather a significant growth momentum. However, a major challenge in the Indian market, is educating the consumer that these packages are available and that it is simple and easy to do a self-drive tour.
The self drive car rental industry for business travel can be fragmented by type of clients which is Corporate and Retail. Corporate clients include car rental for pick up and drop service for the employees. The general clientele list of car rental companies are major airlines and hotels. Car rental companies usually serve all the travelling purposes of the major corporate clients. According to Research analyst of Ken Research.
Indian self drive car rental market is broadly segmented into organized and unorganized sectors. Initially, self drive car rental industry was majorly occupied by the unorganized local operators who provided the self drive car on a rental basis. But over the years the market has evolved gradually and has paved the road for the organized market players to enter into this rental space. Since 2010, the market has engendered an exponential growth owing to entry of greater number of organized players in the market. The major players in the organized sector are Myles, Zoomcar, Let Me Drive, Car Club, Eco Rent a Car and others.
In the outlook period FY'2016-FY'2020, the self driven car rental market showcases a bright future in India due to rising competition and advertising expenditure by the self drive service providers to stand out from its competitors. Additionally, large untapped population base being less awarded of self drive option which gives an immense outlook to the industry and open the doors for television and other modes of advertising.