Gurugram, India, April 12, 2023 (GLOBE NEWSWIRE) -- Vietnam car rental market grew at a CAGR of 14.1% from 2017-2022 owing to increase in tourism and online platforms. Vietnam Car rental market is highly fragmented with small fleet of cars offering tourist and rental packages.
- Improving customer experience: Companies will likely focus on improving the overall customer experience, for example by offering more personalized services, and improving their after-sales support.
- Focusing on sustainability: Companies may invest in more sustainable practices, such as offering electric vehicles or implementing more efficient fuel management systems.
Mobility Landscape in Vietnam: New modes of travelling has evolved in Vietnam such as ride hailing, ride sharing and self-drive car rental services. Ride Hailing is where the rider hires a vehicle and a driver for personal use and the ride is not shared (e.g.: Grab). In Ride Sharing the rider shares the vehicle with other riders travelling in the same direction / area. In Self-drive the rider hires a vehicle for personal use for self-driving, e.g., Zoom car from car rental companies. Car Rentals expanded their services into car leasing and self-drive segment giving customers more options to choose from. With traditional options available for car rentals Uber and Grab entered the market offering car ride hailing and sharing services due to increase in tourism and urbanization and this will grow further in future.
Increase of competition with rise in technology: traditional taxi companies will launch ride hailing and sharing services. With advent of GPS tracking, car rental software and car fleet management will increase the fleet size of companies increasing the availability of car rentals in the country. Increasing internet penetration rate and urbanization, will lead to a growth in the rental market. The use of technology in car rental companies can improve the customer experience, such as through online booking and GPS tracking. For better connectivity in future, In-car technologies would make it easier for renters to travel with an uninterrupted wireless internet connection and satellite navigation facilities. Telematics integration will ensure rider and fleet safety even as they are on the road.
Partnering can help car rental companies in Vietnam: Cloud service companies can provide car rental companies with scalable, flexible and cost-effective IT solutions to manage their operations, reducing the need for expensive hardware and software investments. Car fleet management software can provide car rental companies with features such as GPS tracking, real-time vehicle availability, and booking management, improving the customer experience and reducing the risk of overbooking or vehicle downtime. Fintech companies can provide car rental companies with a range of payment solutions, including digital wallets, mobile payment systems, and other payment gateways, making it easier for customers to pay for their rental services.
Analysts at Ken Research in their latest publication “Vietnam Car Rental Market Outlook to 2027- Driven by Increasing Internet Penetration Rate, Tourism and Urbanization” by Ken Research observed that car rental market is a growing automotive market in Vietnam after the Pandemic. The rising government policies and demand for car rental industry, increase in disposable income along with rising Tourism in Vietnam is expected to contribute to the market growth over the forecast period. The market is expected to grow at 16.7% CAGR during 2022-2027 owing to increase in tourism, rise in demand for car rentals due to high living standards and few government initiatives.
Key Segments Covered in the report
Vietnam Car Rental Market
By Type of Booking
- Online
- Offline
By Car Type
- Hatchback
- Sedan
- SUV
By Purpose
- Business
- Leisure
Vietnam Car Ride Sharing Market
By Region
- Metropolitan
- Non- Metropolitan
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By Point of Service
- Rest Area
- Airport
By Type of Car
- Hatchback
- Sedan
- UV
By Distance
- Short Distance
- Long Distance
Vietnam Car Leasing Market
By Lease Duration
- 1 Year
- 2 Year
- 3Year
- 4 Year or more
By Type of Car
- Premium
- Sedan
- SUV
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By Region
- Metropolitan
- Non- Metropolitan
By End-User
- Corporate
- Individual
Car Ride Hailing Market
By Region
- Metropolitan
- Non- Metropolitan
By Type of Car
- Sedan
- SUV
- Compact
Vietnam Car Self Drive Market
By Type of Car
- Hatchback
- Sedan
- SUV
By Point of Service
- Rest Area
- Airport
By Duration
- Around a Month
- 1-2 Days
- Around a Week
By Cities
- Metropolitan
- Non- Metropolitan
By Booking Channel
- Online
- Offline
By Booking Period
- Weekends
- Weekdays
By Segment of Car
- Standard
- Luxury
By Status of Ownership
- Owned
- Leased
Key Target Audience:-
- Car Rental Service Providers
- Car Rental Companies Aiming to Establish in Vietnam
- Vietnam Automotive Industries
- Government Bodies & Regulating Authorities
- Venture Capitalist Targeting the Car Rental Market
- Automotive Industry Association
- Car Manufacturers
- Existing Car Rental Companies
- OEM Dealerships
- New Market Entrants
- Investors
- Car Rental Associations
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Period: 2022
- Forecast Period: 2022-2027
Companies Covered:-
- Hertz
- Trust Car Rental
- Kayak
- Mai Linh
- Avis
- Budget
- VN Rental
- Green World Car Rental
- Car for Rent
- Enterprise
Key Topics Covered in the Report:-
- Overview of Automotive Industry in the Vietnam
- Overview and Genesis of Car Rental Market in Vietnam
- Ecosystem of Vietnam Car Rental Market
- Business Cycle and Value Chain Analysis of Car Rental Market in Vietnam
- Vietnam Car Rental Market Sizing, 2017- 2022
- Market Segmentations of Car Rental Market
- Growth Drivers and SWOT Analysis of Vietnam Car Rental Market
- Government Regulations and Incentives of Vietnam Car Rental Market
- Challenges, Trends and Developments of Vietnam Car Rental Market
- Competitive Analysis and End User Analysis of Car Rental Market in Vietnam
- Future Outlook and Projections of Car Rental Market in Vietnam, 2022-2027
- Market Opportunities and Analyst Recommendations
For more insights on the market intelligence, refer to below link:-
Vietnam Car Rental Market
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