Factors Influencing The Transformation In The Car Rental Industry

The latest trends happening in the automotive industry is transforming and reshaping the journey of car rental business in India and across the nation. It is believed that the trend that experienced a great influence on the market will continue to dominate in the upcoming year as well.

In fact, the automotive industry has already witnessed several flexibilities like car sharing trend that tested the industry in 2018.

According to a research, the automotive industry has a bright future ahead of it with loads of business and job opportunities. The global automotive industry is recorded to be worth of $58.26 billion and is expected to grow at a CAGR around 13.57 percent between the year 2017 and 2022.

The Changing Buying Power of Consumers

One of the major reasons why the automotive industry is witnessing such immense growth is due to the increase in the buying power of consumers along with the low-cost airfares in the airline industry as normal travelling is becoming cheap. These factors somehow directly influenced the growth of the car rental industry, generating numerous opportunities for entrepreneurs/franchisors.

Increase in Oil Pricing and Inflation

Another economic factor that is influencing the transformation in the industry is the increase in oil pricing and inflation. The constantly growing demand for oil supply is expected to affect the car rental industry as it adds the total cost of car rental products increasing the cost of individual travel, and a decreasing in personal costs.  

But there are instances where it is believed that these economic factors don’t affect the industry a lot. This is when green vehicle trend comes into existence.

The Rise of Green Vehicle

The shift towards green vehicle is providing economic alternatives to people along with increasing the awareness about pollution and the negative effect it is creating in our ecosystem. In fact, some companies believe that this step will also be a major factor behind the transformation of the automotive and car rental industry.

This could prove to be a smart and strategic decision by many companies by being a part of this green movement and riding on it. The green vehicle is considered to be a prime element of the future of car rental industry where companies could be seen following this trend enormously, increasing their sales and profits.

Conclusion

As several trends are constantly invading the automotive and car rental industry, some are proving to be beneficial while the others to be challenging. But most of the trends are expected to bring positive growth to the industry, generating opportunities for people.

Thus, as an entrepreneur/franchisor, one could become familiar with these trends in order to achieve big in this industry in 2019.