Research shows that a majority of people willing to drive certain distances are also willing to hire a car and drive. The current market size of the organised Indian car rental industry is approximately US$2.5 billion, pegged to grow at around 20% year on year. The unorganised sector is said to be three times the size. With 50-60,000 cars going on road per year within the next three years, there has been a dramatic increase in the demand for the premium car rentals to cater to the international travellers (both business and leisure).Â
Currently in India, the car rental market mostly follows the chauffer-drive model. While the self-drive model is the mainstay of the car rentals business worldwide, it has only a minuscule share in India.
International brands such as Avis Buget, Europcar, Sixt and Indian ones such as International Travel House are growing at a fast rate. Domestic tourism is growing and weekend travel by young corporate executives is being serviced by the large car rental operators with chauffeur driven and self drive options.
Either/or
Most car hire companies in India offer to double the advantage by having a chauffeur on call. You have the option of hiring a chauffeur only for the number of hours, which means that you could prefer to be driven to business appointments at peak hours and drive yourself during leisure hours.
Self-drive holiday
Car rental companies are going out of their way to offer the Indian traveller the self-drive experience. Avis India, for example has become the first to offer customised holiday packages with all the elements – return air fare, hotel stay, sight-seeing, meals, taxes and a comprehensively insured and impeccably maintained Avis self-drive car available from a single point of contact.
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Point-to-point
Another version of the self drive ‘point-to-point self-driving’ is the main model in Europe and the US as car rentals are popular for leisure and highway driving and not within the cities where there is traffic. In India, since chauffeur rates are cheap and the road infrastructure poor, customers prefer not to drive themselves. With roads improving along with greater consumer awareness about such schemes, we see potential and companies are targeting an annual growth of 25%.
Abhinav Sood has seven years experience of consulting and analysing the market for car hire majors in India such as Hertz, Avis and Easy Cabs.
Self-drive is slated to grow
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Research shows that a majority of people willing to drive certain distances are also willing to hire a car and drive. The current market size of the organised Indian car rental industry is approximately US$2.5 billion, pegged to grow at around 20% year on year. The unorganised sector is said to be three times the size. With 50-60,000 cars going on road per year within the next three years, there has been a dramatic increase in the demand for the premium car rentals to cater to the international travellers (both business and leisure).Â
Currently in India, the car rental market mostly follows the chauffer-drive model. While the self-drive model is the mainstay of the car rentals business worldwide, it has only a minuscule share in India.
International brands such as Avis Buget, Europcar, Sixt and Indian ones such as International Travel House are growing at a fast rate. Domestic tourism is growing and weekend travel by young corporate executives is being serviced by the large car rental operators with chauffeur driven and self drive options.
Either/or
Most car hire companies in India offer to double the advantage by having a chauffeur on call. You have the option of hiring a chauffeur only for the number of hours, which means that you could prefer to be driven to business appointments at peak hours and drive yourself during leisure hours.
Self-drive holiday
Car rental companies are going out of their way to offer the Indian traveller the self-drive experience. Avis India, for example has become the first to offer customised holiday packages with all the elements – return air fare, hotel stay, sight-seeing, meals, taxes and a comprehensively insured and impeccably maintained Avis self-drive car available from a single point of contact.
Â
Point-to-point
Another version of the self drive ‘point-to-point self-driving’ is the main model in Europe and the US as car rentals are popular for leisure and highway driving and not within the cities where there is traffic. In India, since chauffeur rates are cheap and the road infrastructure poor, customers prefer not to drive themselves. With roads improving along with greater consumer awareness about such schemes, we see potential and companies are targeting an annual growth of 25%.
Abhinav Sood has seven years experience of consulting and analysing the market for car hire majors in India such as Hertz, Avis and Easy Cabs.
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