Car Rentals - India

India

Highlights

By 2024, the revenue in India's Car Rentals market is expected to reach US$3.16bn.
The projected annual growth rate (CAGR 2024-2029) is 6.76%, resulting in a projected market volume of US$4.39bn by 2029.
By 2029, the number of users in the Car Rentals market is expected to reach 119.80m users.
The user penetration rate is projected to be 5.6% in 2024 and 8.0% by 2029.
The average revenue per user (ARPU) is expected to be US$39.30.
In India's Car Rentals market, online sales are projected to generate 77% of the total revenue by 2029.
It is noteworthy that United States will generate the most revenue in the global comparison, with a projected revenue of US$32bn in 2024.
India's car rental market is experiencing a significant shift towards app-based services, with companies like Ola and Uber dominating the space.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in India is experiencing significant growth and development.

Customer preferences: Customers in India are increasingly opting for car rentals as a convenient and cost-effective mode of transportation. With the rise in disposable income and changing lifestyles, there is a growing demand for flexible and hassle-free travel options. Car rentals provide the freedom to explore different destinations at one's own pace, without the need to rely on public transportation or the expense of owning a car.

Trends in the market: One of the key trends in the Indian car rentals market is the increasing popularity of self-drive car rentals. This allows customers to rent a car and drive it themselves, giving them more control over their travel plans. Self-drive car rentals are particularly popular among young professionals and tourists who prefer the flexibility and convenience of driving their own vehicle. Another trend in the market is the emergence of online car rental platforms. These platforms provide a convenient way for customers to compare prices, book cars, and manage their reservations. The ease and accessibility of online car rental platforms have contributed to the growth of the market, making it easier for customers to find and rent a car.

Local special circumstances: India is a diverse country with a rich cultural heritage and a wide range of tourist destinations. This diversity has led to an increase in domestic and international tourism, driving the demand for car rentals. Tourists visiting India often prefer to rent a car to explore the country's attractions at their own pace. Additionally, business travelers also rely on car rentals for their transportation needs during their visits.

Underlying macroeconomic factors: The growth of the car rentals market in India can be attributed to several underlying macroeconomic factors. The country's strong economic growth has led to an increase in disposable income, allowing more people to afford car rentals. Additionally, the growing middle class and urbanization have contributed to the demand for convenient and flexible transportation options. Furthermore, the government's focus on infrastructure development, such as the improvement of road networks and the construction of new highways, has made traveling by car more accessible and convenient. These infrastructure developments have also contributed to the growth of the car rentals market by improving connectivity between different cities and regions. In conclusion, the Car Rentals market in India is witnessing significant growth and development due to changing customer preferences, such as the increasing popularity of self-drive car rentals, and the emergence of online car rental platforms. The diverse tourism landscape and the country's strong macroeconomic factors, including economic growth and infrastructure development, are also driving the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car rental services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.