The Indian car industry has grown leaps and bounds over the years due to a rising demand for better and sustainable modes of transportation among its growing urban population. Driven by a hunger to experience vast avenues, coupled with an innate fear of missing out on certain opportunities, the millennial youth is gradually becoming the force that is fuelling the growth of this industry. According to a report by the Ken Research, this market revenue is projected to grow at a considerable Compound Annual Growth Rate of 35 per cent. Furthermore, this sector is expected to be worth more than Rs 800 billion by 2019, which is quite an encouraging aspect for market players in this segment.

The car rental market has several factors in its favour that are responsible for its growing success in the country. With car rentals, consumers can easily find the best vehicular options based on their requirements. Whether it is for reaching another city, attending an event or business meeting, or simply for travelling, it offers a wide range of vehicles that best suit an individual’s needs. A typical hatchback car can only accommodate a maximum of five people. However, for those who wish to travel in a larger group, car rentals are the best option. Most service providers these days allow people to pick the vehicle of their choice for their travelling needs. Perhaps one of the biggest advantages that rental cars have over personally owned cars lies in its limited scope for repair and maintenance. Despite being a relatively new market, rental cars get an upper hand over personally owned ones when it comes to being pocket-friendly. This commuting option is cost effective, allowing customers to save a lot of money, while also enjoying a hassle free experience.

These days, it has become quite common for people to book or rent cars as and when they want, or from wherever they are through tech-enabled online car rental services that can be accessed with just a touch or tap of a button. Since most people possess smartphones nowadays, accessing such services seems like child’s play. Integrating comprehensive technology in one’s car rental business has enabled many owners to expand their services on a wider user spectrum, a move that has helped in significantly improving their overall experience. Online platforms have managed to accelerate the growth of India’s car rental industry, and have also enabled several offline service providers to upgrade their business model by following the digital route.

In a 2015 report, Cognizant stated that players in the car rental industry have the potential to acquire more visibility and competitive edge over their peers in the market through “retailification” by introducing retail-based business concepts into the space in order to make them more scalable. It usually involves building an omni-channel market base, utilising location-based and real-time technologies, social media optimisation and hands-on customer support.

With many businesses already following this concept in the country, it is possible to see many brick and mortar businesses in the car rental space following this trend to increase brand visibility across various platforms in the near future.

The writer is a joint managing director, Eco rent a car.