Regarding security, privacy and, most importantly, cleanliness, private transport is the best option. However, when considering the current economic downturn due to the pandemic, an automobile and locking up your finances for a period of three to five years could not be the best option. That’s where rental cars can be found. With the market projected to increase at a rate of between 15 and 15 percent, car rentals have proved to be an extremely lucrative business in India.
In reality, cars for rent may even be safer today thanks to brands that adhere to strict security and hygiene standards using cutting-edge technology. They’ve also created plans that are subscription-based, cost-effective as well as convenient and secure. Particularly in light of the current economic downturn, car rentals could prove to be a better choice over ride-hailing as it is an affordable and faster option to purchase the car you want and provides an affordable and secure alternative to personal mobility. Car rentals that are subscription-based are rapidly gaining popularity, with a large number of people opting for these. Let’s look at how subscription-based car rentals are now an option of choice for the majority of people.
Car subscriptions are gaining popularity.
The ownership of a car in India is still regarded as to be a status sign of status; however, because of the issues that come with it, such as a lack of parking and the fluctuation in rates of gasoline and insurance premiums, etc. Many people put off making car-buying decisions. Additionally, the epidemic has led to a multitude of job losses, putting more pressure on the suffering of many, making it difficult to afford a vehicle. So, the idea of purchasing or owning automobiles is quickly changing to a subscription automobile to use for personal purposes, which results in the auto industry witnessing an evolution in the way people shop.
Based on the Automotive Subscription Services 2020 Global Market Report, the global automotive subscription market is set to grow to $9.15 billion by 2024, growing at 64 percent over the forecast time. As lockdown regulations are gradually eased, and offices return to business, as well as cars and rental companies are experiencing an unprecedented increase in the demand for their services.
The shift to subscription models
CA cars subscription is an option where a client is charged a monthly fee to utilize one or more automobile vehicles. In the beginning, the lock-in time is shorter, and the costs are affordable. While the idea of subscribing to an automobile is not new, it’s only recently gained immense popularity, especially among urban millennials.
The focus has moved from having a car to enjoying the experience, and having a car subscription can make the experience easy. Subscriptions to vehicles are a good option for those who want to explore and are looking for diversification over sticking to one vehicle for long periods. In addition, subscription models are ideal for people who have jobs that can be transferred, eliminating the need to carry their car from one location to the next when they relocate.
Making use of technology for seamless experiences
One of the main reasons for the subscription-based model is that they utilize cutting-edge technology to provide a seamless experience for their customers. With artificial intelligence and machine-learning algorithmic processes, rental car firms use the latest technology to guarantee the security of their customers. From complete sanitization to keyless entry systems to keys, businesses are placing the best practices in hygiene and safety at the forefront, certainly with the help of technology.
We’re witnessing the wind of change sweeping across the automobile industry in India, particularly in the rental car industry. Car subscriptions, whether they will become more popular than sales of cars, are a constant discussion since the two cannot be compared. However, when you consider the speed at which car subscriptions are being used and infused with new energy into the manner Indian customers think about sharing mobility, as well as owning the vehicle. The car rental industry, as well as the subscription models, are well on their way to reshaping the norms that are in place, and their future is promising.