Augmented penetration of the Organized Dealers coupled with huge investments coming from VC and PE firms have further led to the development of various competencies in India Self Drive Car Rental Space.
The India Self Drive Car Rental Market is heavily concentrated in Tier 1 and the entire major cities in India; however, the market has not reached stagnancy in these areas as there is a huge gap in demand and supply.
Self Drive car Fleet in India is expected to increase in the future, thus growing at a positive CAGR of approximately 14.6%, due to increased level of Investments and Strategic Partnerships of the players with other Service Providers.
Last couple of years saw the establishment of various start-ups and small private companies due to heavy investments by Private equity and VC firms.
India is expected to emerge as the world’s third-largest passenger-vehicle market by 2021 in terms of sales.
Entry of new start ups such as OLA and others who already are functioning in the rental industry pose big threat as their competencies would be a major differentiator for the market.
It is expected that more people will join the workforce of India. Participation level could reach 67% in 2020, as more women and youth enter the job market, raising the demand for mobility.
Analysts at Ken Research in their latest publication “India Self Drive Car Rental Market Outlook to 2024 – Rising Prominence of Shared Mobility Space with Growing Competencies of Self Drive Companies due to Growing Investments” believed that the Self Drive Car Rental industry in India will augment owing to the rising Tourist population arriving in India year after year, coupled with increase in personal disposable income and a proper establishment of government regulations and amendments of law in the coming years. This rise is expected to result in the increased availability of various pickup points along with the entry of new players across the nation. The market is expected to register positive double digit CAGR of 13.6% in terms of Gross Transaction Value and similarly the market will grow in terms of Fleet size, showcasing a positive CAGR of 14.6% during the forecast period FY’2019-FY’2024.
Growing Presence of Organized Players: The market for self drive in India has witnessed a drastic change from dominance of unorganized players towards an inclination towards organized players in the market. With rising awareness among people about self drive car rental and increasing preference of well equipped and better quality cars has led to rise in number of organized players in the market. Similarly in the future, Fresh investments and new opportunities in the market will also lead to entry of new players in the market, where they can explore the unexplored areas of the Indian Market.
Growing Concern of the Government: The Government of India is keen on making India a Zero Emission zone by 20130 and for that, Self Drive Car Rental will play a major role as it will help in reducing the number of Private cars on the road, Hence there will be a push from the government in terms of rules, guidelines and regulatory framework.
Less Financial Burden: A majority of population in India tends to buy a car by taking loans for various financial institutions. This adds up to their living costs as the burden of paying EMI and Premium for Insurance of cars, does not come in cheap and needs to be in line with what the person is earning. To tackle this problem, the self drive car rental market works on an asset light model where the person is not focused on tackling these problems, rather he or she can avail services of a car, as and when they may require it. The decline in financial burden and the pay per use model is supposed to provide momentum to the market and help it grow.
Penetrating the unexplored market of India: The India self drive car rental market amounts to almost 1% of the total Population in India and the Marketing prospects in Tier 1 cities as of now also have reached a Stalemate where a stagnant growth has been noticed. Hence, low amount of penetration in Tier 2 and Tier 3 cities majorly acts as a hindering factor to the growth of this market. This problem of penetration still prevails in certain cities due to the dogmatic mindset of people regarding owning their own vehicle instead of sharing vehicles with their peers and colleagues. Hence the market would be focusing on expanding their services and products to the unexplored markets of India.
Key Segments Covered:-
By Cities of India (Bangalore, Delhi Mumbai and Others)
Number of Bookings
By Booking Channel (Mobile, Online and Physical)
By Booking Package (Hourly, Daily, Weekly and Monthly)
By Usage (Intercity and Intracity)
By Booking Period (Weekends and Weekdays)
By Types of Cars (Hatchback, Sedan, SUV+MUV)
By Segment of Cars (Standard and Luxury)
By Status of Ownership (Owned and Leased)
Key Target Audience:-
Startups and Private car Owners
Online Self Driving Car Rental Portals
Organized Multi Brands Dealers
OEM Certified Dealerships
Private Equity and Venture Capitalist Firms
EV Service Provides
Car Auction Companies
Time Period Captured in the Report:-
Historical Period – FY’2014-FY’2019
Forecast Period – FY’2019-FY’2024
Major Companies Covered:-
Eco Rent a Car
For information click on the below mentioned link:-
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Ankur Gupta, Head Marketing & Communications