Car Rental Business in India

The car rental industry is a one of the young flourishing industries of India. Although the industry is part of the unorganized sector, yet it has shown considerable amount of growth in the last few years. The industry has also gone through a lot of changes in the last few years. Initially, the quality and the quality of the cars used were not of very high standards. But now, with the process of change and development shown by the industry, making aspects of it are slowly changing. For example, the cars that are being provided now are mostly branded.

Even the concept of self drive is being practiced and encouraged by the car renting companies. There has been a major leap made by the car rental industry of India as the estimated worth of the industry has grown up to approximately Rs 9000 crores from Rs 3000 crores in last few years. This has been a hugh boost for the industry, as after seeing the growth prospects of the car rental industry in India, many big foreign car rental companies have decided to invest and open offices in India.

Till now the normal protocol for almost all the car rental companies in India had been to rent cars with chauffeurs. However, now slowly with the growth of the industry the norms are changing as well. The car rental companies of India are now of the opinion that the Indian customers have finally arrived at a juncture, where they can handle rented cars without the need of a chauffeur. This is very important as there are many customers who wants to drive on their own and does not like the car being driven by chauffeurs.

Most of the major car rental companies of are working on setting up self drive offices in major cities and on setting up desks in airports and hotels of India. They are also trying to set up fleet management and chauffeur driven cars for corporates. They have even gone to the extent of offering holiday packages to their customers as they have tie ups with hotels throughout the country.

The major players in this segment feel that there is immense scope and opportunity in this field as it is an untapped market. So investing and developing this sector will be a major developmental boost for the Indian economy as well.