The self-drive rental car industry has witnessed remarkable attention among the young generation in the last 4 years. The year 2013 transformed the rental car industry trend to self-drive rental cars in India. Some of the well-known players are Zoomcar, Myles, Voler, MiCar, Revv, Rentomojo, JustRide, Avis, Selfdrive.in and Carzonrent in the Indian market. Today, self-drive cars are available in most of the metropolitan cities of India. Straightaway, Delhi NCR, Bangalore, Mumbai, Pune, Hyderabad and Chennai are the major revenue source. The major portion of this industry is still unorganized in India. Many companies are changing the old age style of car rental industry with a chauffeur to self-drive. This industry had grown remarkably and has many more milestones to achieve.
Market Size of Self-Drive Cars:
Karnataka, Haryana, Maharashtra and Goa holds a larger revenue share in the car rental industry. These states also witnessed significant growth in renting self-drive cars. Most of the companies are already offering their services in these states. Every player in this industry has a fleet of cars ranging from Tata Nano to high-end luxury cars like Mercedes-Benz, BMW and Audi. Tariff prices start from as low as Rs. 30 per hour (Tata Nano) to Rs. 300 per hour for luxury cars. In addition, cars are available on rent with an option to hire on an hourly basis or daily basis. Likewise, one can also hire self-drive cars for weeks or even months.
The Major States of Self-Drive Rental Car:
1. Karnataka: Karnataka has proved to be one of the best locations for the car rental industry in India. Bangalore gave birth to the concept of the self-drive rental car industry with Zoomcar being the biggest player. Almost every company in this industry offer its services in Bangalore. Many service providers also started to offer 2-wheelers on rent in Bangalore. Additionally, there are more than 25 locations to pick self-drive cars in Bangalore. Moreover, one can also get the car delivered and picked from their door-step. There is a huge demand in Bangalore, companies should also offer drivers on demand to raise the business further. 2-wheelers on rent also experienced noticeable growth. Mangalore could be the next destination for many companies in Karnataka. Mysore, Ooty and Coorg are the major destinations from Bangalore. Renting self-drive cars on one-way from Bangalore could further attract many travellers.
2. Haryana/Delhi (NCR): Haryana being an adjacent state with India’s capital Delhi has many benefits. Most developed city in NCR is Gurgaon which enjoys enormous growth in the car renting industry. Haryana is the second popular state for self-drive rental companies like Zoomcar. Such great popularity gave birth to many companies in the self-drive rental domain in Delhi. Carzonrent (Myles), Voler, Revv are some of the well-known Delhi based self-drive rental companies. These companies enjoy the benefit to the large geographical area including Gurgaon, Noida and Delhi. Faridabad is also connected to NCR but with little more development of this sector in Faridabad could result better. Most popular destination from NCR is Chandigarh. Zoomcar started offering one-way service between NCR and Chandigarh a few months back. Offering similar services by other companies could raise the competition further. There is still a need to strengthen their hands in the outer portion of NCR naming Greater-Noida, Faridabad and Ghaziabad.
3. Maharashtra: Maharashtra has great potential for any industry in any sector with Mumbai and Pune serving the best. The self-drive rental industry is no different in Maharashtra. With more than 15 companies serving its services has a good hold in Mumbai, Pune and Chinchwad. Chinchwad adjacent to Pune serves best for many self-drive rental companies. Chinchwad is the most popular and most revenue making town for self-drive rental companies in India. 2-wheelers on rent also shown remarkable growth in Mumbai and Pune. The package comprising of requirements for 1 or 2 days to Lonavala, Shirdi, Mahabaleshwar, Lavasa and other popular destination from Mumbai and Pune could attract more customers.
4. Gujarat: Gujarat is the state which never disappoints any industry to start its business. Ahmedabad gave a great response and attraction in hiring self-drive cars on rent. Most of the matured companies are already offering their services in Gujarat. Vadodara, Surat and Rajkot also showed a great interest in renting self-drive cars. Ahmedabad is well connected with Mumbai and Pune and a large number of people prefer to travel by road. Packages linking Ahmedabad with Pune and Mumbai could be a better option for many.
5. Tamil Nadu: Chennai also witnessed tremendous growth in the car rental industry and brought a positive change to rent a self-drive car. The young generation of age up to 35-40 year and college students showed a visible interest. Currently most of the companies only in Chennai. But Coimbatore, Madurai and Vellore are likely to be the next market in Tamil Nadu. Vellore and Chennai have a large number of students as self-drive rental companies’ customers. Companies should attract students to elevate the business.
Future Scope of Self-Drive Rental Car:
With a large number of competitor present all over India, the market space witness remarkable growth. Car rental industry is still unorganized in most of the parts of India. Kolkata and Hyderabad will be the next big market for matured players in this industry. Likewise, matured players should also offer drivers on demand to target senior citizens. Most of the companies have a huge amount of security deposit. Minimizing the amount of security deposit could shift many customers. Additionally, college students often opt self-drive cars on rent for weekend gateways. Many companies’ policies are diverging them to other service providers. In addition, packages to major destinations would be the next step in the self-drive rental car industry.
Furthermore, this is just an additional or temporary service which is nowhere focused to change the new car buyers mind. This industry is not an alarming industry for the automobile industry. We hope to see the development of self-drive rental car industry in Tier-II cities also and to organize the largely unorganized sector in India.
For customized market research reports for any kind of startups and business in any industry, you can contact Craft Driven Market Research team here directly.Tags: Craft Driven, Craft Driven Market Research, market research, Myles, rental cars, self-drive, Startup India, startups, Zoomcar