Self-Drive Car Rental Market In India 2019-2025

October 12, 2019
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INTRODUCTION

India`s car rental market was and even till today a largely unorganized market. Car rental in India is often assumed a chauffeur driven vehicle, due to abundant cheap labour, which is otherwise considered a luxury in high income countries.

 

Self-drive car rental was unheard of In India until 2001 when Hertz launched its licensed operations called Carzonrent, creating a niche. The segment remained a niche until 2013 when Zoomcar launched its operations in Bangalore with a fleet of <10 vehicles, which has now gone past 4,000 as of May 2019.

 

MARKET DYNAMICS

The self-drive car rental market in India is majorly driven by the gap in driving license holders(127 Million) and car owners( 22 cars/1000 people in 2019).There is also the case of compact car(<3.6m in length and powered by <1L gas engine) owners who prefer to rent a bigger, safer and powerful vehicle for intercity trips. About 28% of new cars sold in India belong to this segment.

 

Over past 12 months there has been a growing trend of investment in self-drive car rental operators by car manufacturers. Ford started it in Zoom cars back in 2016, followed by Mahindra in Zoom cars in 2018, Hyundai in Revv in 2018 and now Mahindra again in Zoom cars in 2019.

 

MARKET SEGMENTATION

Market Segmentationby vehicle type, user type and trip type

MARKET SIZE AND FORECAST

The self-drive car rental market in India is heavily concentrated in tier-1 cities like Delhi NCR, Bangalore, Mumbai and Hyderabad.

 

Till 2016, about 75% of the rental used to happen on weekends, which has now reduced to 64% as of May 2019.

 

The rental charges typically range from 1,400INR( $20) per day for small cars to 12,000($170) per day for bigger SUVs and luxury cars, with 15-20% variation between weekdays and weekends.

 

We believe, the self-drive car rental market in India, estimated at < $100 Million in 2019, is massively under-penetrated and there is a very strong growth potential.

 

The self-drive car rental market size in India is estimated at $XX Million in 2019 and will grow to $YY Million by 2025.

 

 

COMPETITIVE LANDSCAPE

There have been many new entrants in self-drive car rental market in India but the market structure has remained more or less the same. The older entrants like Zoomcar, Drivezy and Revv have consolidated their position, broadened their fleet size and expanded to many cities.

 

Ola, the market leader in ride hailing market in India has announced that it will enter the self-drive car rental market but only in the luxury and corporate leasing segment.

 

To know more about ride hailing market in India. Read our On-demand taxi Market in India report 

 

Almost all operators, started operations from 5-6 metro cities and are constantly looking to expand their services to smaller cities and even internationally to attract new set of consumers.

 

Most of the operators Ex Zoomcar, Myles have now adopted an asset light business model i.e. they source cars from taxi operators, private owners and institutions to improve their margins and reduce their capex and liability.

 

The cars sourced from private owners via leased program now makes up for 10-13% of total fleet size.

 

TOP 5 SELF DRIVE CAR RENTAL OPERATORS IN INDIA
Sl noOperatorPresence in number of cities- May 2019Funding as of
May 2019($M)
Fleet size-Estimated – May 2019 (units)
1Zoom Car411034,000
2Revv19231,100
3Drivezy111492,900
4Myles20N/A1,600
5Mychoize10N/A1,000

 

Among the top 3 players ,Drivezy is the most funded but is present in least number of cities

 

COMPANY PROFILES
  1. Zoomcar India Private Ltd.
  2. Revv(M/s PrimeMover Mobility Technologies Private Limited)
  3. Mychoize(ORIX Auto Infrastructure Services Limited.)
  4. Drivezy India Travels Private Limited
  5. Vroom Drive India Private Limited
  6. Myles Automotive Technologies Private Limited
  7. ZipCaars
  8. Avis India
  9. Jiffy Cars
  10. Eco Rent a Car

 

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1. What could be the potential market size of self-drive car rental, both volume (Million trips) and value ($M) during 2019-2025?
  2. What are the economics of car rental market to become profitable and a leader in India?
  3. Which car segments are rented the most, what is the average ticket size and  average margin for operator?
  4. Key differences between car rental market in India as compared to US and European markets?
  5. What are the problems faced by car rental operators in India?
  6. The top 5 cities to watch out for in self-drive car rental in India and why?
  7. Is there a market for self-drive car rental in tier-3 cities in India? If yes then in which cities?
  8. Consumer profile in tier-1/tier-2 and tier-3 cities
  9. Who is funding the self-drive car rental startups and why? How do they seek return on investment, when margins are squeezed?
  10. Why are many operators entering into vehicle subscription business model, in partnership with OEMs?
  11. Will car-subscription business model be successful in India and replace car ownership?
  12. What is the scope for a new entrant and can it become profitable in 5-7 years?
  13.  Cash burn for customer acquisition and retention
  14. Is micro-mobility,chauffeur driven car rental and ride hailing a threat to self-drive car rental in India
  15. Market Share of Major Players in Self Drive car Rental Market in India by revenue
1Market Segmentation3
2Executive Summary5-6
3Introduction7
4About car rental fleet operators in India8
5Legislations impacting car rental fleet operators9-10
6Comparison between bike sharing, scooter sharing, self-drive car rental business model in india11-12
7Top purposes served by car rental13
8About self-drive car rental users14-15
9Self-drive car rental growth in number of cities 2018-H1 201916-17
10Fleet size of Self-drive car rental operators in top 10 cities18
11Cash flow and burn rate of Self-drive car rental start-ups19
12Opportunities and risks with the rental business model in India20
13Market Size ,Dynamics and Forecast By City type21-30
14Market Size ,Dynamics and Forecast By Trip type31-32
15Market Size ,Dynamics and Forecast By Vehicle segment33-45
16Competitive Landscape46-48
17Funding raised by self-drive car rental operators49
18All about investors in self-drive car rental operators in India50-51
19Company Profiles53-70
20Unmet needs and Market Opportunity for new vendors71-72
21Conclusion73-75
22Appendix76-80
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