Self-drive Car Rental Market in Emerging Countries 2016-2020

Overview of the self-drive car rental market in the emerging countries

Technavio’s market research analyst predicts the self-drive car rental market in the emerging countries to grow tremendously during the forecast period, posting a high CAGR of more than 22%. The self-drive car rental market in the emerging countries is mainly driven by factors such as government restrictions regarding private car ownerships and increased access to technological advancements like the Internet and smartphones. The Chinese self-drive car rental market is the largest among the three emerging economies and contributed to the maximum share in the overall market. Changes affecting the Chinese self-drive car rental market will have a strong impact on the overall self-drive car rental market of the emerging countries. However, the self-drive car rental market in India will account for the highest growth compared with the Chinese and Brazilian self-drive car rental markets in the coming years. The market is at its nascent stage and offers immense growth opportunities for the market players.

OEMs like General Motors and Ford are competing to create their fleet of self-driving cars. They are also entering partnerships with several self-drive car rental companies and managing their fleet. Through such strategies, OEMs get a better comprehension of the issues regarding ferrying people from location to location and road specific conditions and obstacles faced by the drivers. OEMs can also utilize the self-drive car company’s fleet for introducing their self-driving driverless cars in future. Also, OEMs would benefit from the sale if the customer renting the car gets induced to buy the same. Ford has collaborated with Zoomcar in India, for operating a car-sharing initiative, which focuses on the smaller groups of people such as co-workers, families, and apartment dwellers to share a vehicle.

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Competitive landscape and key vendors

Characterized by the presence of a limited number of well-established vendors, the self-drive car rental market in the emerging countries is competitive. The key vendors in the market are currently extending their customer base and are increasing their investments in R&D. The number of operators in the self-drive car rental market is high while the market leaders such as Zoomcar, CAR, and, Localiza are focusing on expanding their business operations to tier 2 and tier 3 cities. Moreover, the competitive scenario in the market will intensify in the coming years with advances in technology, government regulations, and the entry of new competitors. Also, the governments and corporate companies in emerging countries like India, Brazil, and China are anticipated to collaborate with operators to get cheap transport and reduce congestion on the roads.

Leading vendors in the market are -

• Zoomcar
• Avis
• Hertz
• CAR
• Localiza

Other prominent vendors in the self-drive car rental market in the emerging countries include Myles, Let Me Drive, Car Club, and Eco Rent a Car.

Segmentation by body type and analysis of the self-drive car rental market in the emerging countries

• Hatchback
• Sedan
• SUV

Sedans are the most preferred rented cars in the emerging countries and accounted for the maximum market size in 2015. Sedans range between hatchbacks and SUVs and offer better comfort and driving experience than hatchbacks as they are powered by bigger and powerful engines. Also, the extra boot space in sedans is an extra advantage especially when people rent them out for long trips. Customers prefer to undertake long road trips on sedans as they are more cost-effective than SUVs. The C-segment sedans have the highest popularity and constitute approximately 55% of the total sedan segment.

Geographical segmentation and analysis of the self-drive car rental market in the emerging countries

• China
• India
• Brazil

China dominated the market in 2015 and will continue to maintain the lead throughout the forecast period. The major factors driving the self-driving car rental market in China are the rising urbanization rates, government regulations regarding owning private cars, and the gap between license holders and non-car owners. Moreover, the increasing pollution levels as well as the rising level of congestion on the roads, act as main hindrances in buying new cars, subsequently paving the way for car hire. In 2015, China’s biggest car rental company, CAR, reported an increase of over 35% in its car rental revenue compared to 2014.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the self-drive car rental market in the emerging countries?
• What are the key market trends impacting the growth of the self-drive car rental market in the emerging countries?
• What are the challenges to market growth?
• Who are the key vendors in the self-drive car rental market in the emerging countries?
• What are the market opportunities and threats faced by the vendors in the self-drive car rental market in the emerging countries?
• Trending factors influencing the market shares of emerging countries such as China, India, and Brazil.
• What are the key outcomes of the five forces analysis of the self-drive car rental market in the emerging countries?

Technavio also offers customization on reports based on specific client requirement.

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