Businesses that rent or lease individual cars without drivers are included in the car rental and leasing industry. Vehicle/automobile leasing is governed by a lease agreement or contract. A leasing agreement is a contract for future performance between the lessor and lessee. Both the lessor and lessee must sign a documented leasing agreement. The lease agreement can be executed as either an operating lease or a finance lease.
Indonesia Car Rental and Leasing Market Driving Factors and Challenges
There are several challenges that drive the market growth, People are becoming increasingly open to traveling light as a result of individual mindsets and cultural developments. When traveling, people prefer to hire a car rather than own one. This shift in social attitude contributed to the unusually high demand for rental cars. Visitors arriving by automobile no longer travel to Indonesia. Tourists are shopping for rental cars for their trips. Furthermore, many travellers prefer to rent a car so that they can explore their destinations at their leisure and convenience. Furthermore, business travellers regularly use rental automobiles for their transportation needs when on business trips. Renting a car provides flexibility, cost, and the chance to choose the best vehicles for your needs.
The country's inadequate infrastructure, particularly in terms of road condition and traffic congestion, poses a significant obstacle. Poor road conditions in some places can result in increased wear and tear on rental vehicles, affecting operators' maintenance costs. Furthermore, traffic congestion in major cities can cause delays and decreased vehicle use, decreasing the profit potential of rental and leasing organizations. Another challenge is the regulatory environment. The Indonesian government has adopted a number of legislation and levies related to the car rental and leasing industry, which may increase operating expenses.
Impact of COVID-19 on Indonesia Car Rental and Leasing Market
Due to the market's dependence on Indonesian tourism, the COVID-19 pandemic had an effect on it. The sector experienced a progressive decrease in passenger and tourist traffic as a result of the virus's spread, which had an effect on the demand for car rental services. After 2021, though, the tourism industry began its expansion phase, and there was a considerable demand for car rental services.
Indonesia Car Rental and Leasing Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Adi Sarana Armada Tbk, Avis Budget Group, Blue Bird Group, Europcar Indonesia, Globe Rent a Car, Indorent (PT Indomobil Multi Jasa), Mitra Pinasthika Mustika Rent, and The Hertz Corporation.
Indonesia Car Rental and Leasing Market Segmentation:
By Booking Type: Based on the Booking Type, Indonesia Car Rental and Leasing Market is segmented as; Online, Offline.
By Rental Duration Type: Based on the Rental Duration Type, Indonesia Car Rental and Leasing Market is segmented as; Short, Long Term.
By Application Type: Based on the Application Type, Indonesia Car Rental and Leasing Market is segmented as; Tourism, Commuting.
By Region: This research also includes data for Northern Region, Eastern Region, Western Region, and Southern Region.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.