Based on the Deloitte 2019 Global Automotive Consumer Study, more than half of Indian millennials doubt the need to purchase and own cars. The report noted that sharing mobility was becoming more popular in a nation where the majority of the people are less than 25. In the year 2019, vehicle sales in India reached a low for two decades, and passenger car sales dropped under 3 million.
A rise in GST, a liquidity shortage, and other problems like rising costs for new engines according to the Bharat Stage Six (BS-VI) emission standards were among the reasons for the decline in sales overall. These factors also paved the way for the growth of shared mobility solutions that are less expensive, more efficient, and more effective. The main contributors to this are car rental firms. By utilizing cutting-edge technology and a great user experience have made it much easier for commuters to walk instead of driving. Let’s take a look at how car rental firms have transformed the industry of shared mobility in India and the reasons why a large portion of the population is using them to get around.
Adapting to consumer requirements
The global market for car rental is projected to reach $164,335 by 2022. The reason for this is due in large part to car rental companies swiftly evolving and adapting to the demands of consumers. In the pursuit of being able to provide sustainable transportation that is affordable and energy-efficient, car rental companies have made sure that they tap the capabilities of modern technologies like machine learning, artificial intelligence, and data analytics to provide the most enjoyable experience for customers based on their preferences. Together with these tools, they have simplified the rental process of renting cars.
From selecting your vehicle and the fuel type to the payment options, The entire process is handled by technology, allowing consumers to enjoy an easy experience. Technology-enabled systems like GPS security, telematics, and security systems that allow for enhanced safety and navigation have made shared mobility more appealing to the modern-day consumer.
Affordable and sustainable
The Morgan Stanley report predicts that in the next decade, India will witness massive growth in shared mobility services. It is expected to become one of the world’s leading nations for shared mobility. Due to the growing increase in population, particularly in metropolitan cities, as well as the declining available space in the city, climate change, as well as the increasing cost of gasoline and taxation, People tend to become interested in sustainable development. Rental cars are more sustainable as they are more eco-friendly than owning a vehicle. Since the introduction of electronic vehicles (EVs), the rental industry is aiming to be even greener.
Car rental services are readily available and provide a variety of options that are cost-effective and can be arranged depending on the requirements of the user. Another aspect that consumers should not be concerned about is the expense and hassle involved in maintaining their vehicle. This is a benefit rental vehicles have over privately owned vehicles since the responsibility for maintaining and repairing the car is very minimal. Although car rental companies have guidelines for the customer to be responsible for any damages that may occur to the vehicle, they do not have the maintenance costs that are required for the owner of the car. Also, one is free of anxiety about the declining value of a property when renting a car instead of having one. The numerous benefits of renting a car have made sure that car rental companies have gained an enormous user base in a short time, as well as increased use of shared mobility throughout the United States.
While the market for shared mobility has advanced rapidly in recent years however, there is still a lot of potential that has yet to be discovered. The EV market is at the beginning of its development in India. However, it is expected to expand rapidly as both the private and government sectors are working to develop the technology of electric vehicles. Based on the data and figures, it’s clear that the sharing mobility sector has established a solid base in the country and is expected to grow even more. For a better understanding that shared mobility is a reality, we will have to wait and discover what the future holds to offer.