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Perspectives from India

Growth potential of car rental market

 Growth potential of car rental market

Rajiv Vij, Managing Director & CEO, Carzonrent India

Mar 02, 2014 12:00 AM

India is Unique. Its distinctness comes from various facets of the people who make this country. The sheer numbers of people that are part of the population allow any new idea enough opportunity and acceptance for innovation. As long as there is a well thought out idea, communicated well, there will be a market for it. The second uniqueness comes from the need to customize for every mile covered in India. The people change, habits change and hence a new product is born. This makes Brand India a unique offering for the rest of the world. The products and people who represent this brand are a representation of this diversity and ability to innovate.

In the Car rental space, the developed world has seen a long timeline of trial and tests and current consolidation in a period of over 90 years. The results are commendable and showcase prowess in sustenance.

The Indian Car rental market on the other hand has organized itself only in the last 15 years and still marginally. However, it is the uniqueness of the market that has led to an industry that has half a million cars generating over US$4 billion in annual revenues in this time period. The potential for growth of the industry and evolution of Indian brands in this industry is huge because of the sheer size of the market consisting of very large number of business and leisure travellers, technology and service innovations that the industry players are introducing, willingness of the consumers to try and use new services and innovations and internet penetration. This brings the Indian Car rental industry to be in a unique position. We have a large market ready to test and accept new products. We are not only utilizing the learning of the developed world faster but are in a position to bring new products to the world market. Our expertise in the Chauffeur driven service and technologies and processes developed to manage services is a huge strength and allows us to create models suitable for the most advanced or the most technology savvy markets. I believe this ability to scale up or customize to the individual level is the uniqueness of every product that comes out of Brand India which has been lost in the more developed markets somewhere.



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