Car rental and leasing are two different methods of obtaining access to a vehicle without actually owning it. Car rental is a short-term arrangement in which individuals or organisations borrow a car for a set length of time, usually hours, days, or weeks. It's similar to borrowing someone's car for a short vacation or special occasion. Rental firms offer a variety of cars to consumers and charge a fee based on the rental time and kind of car. On the other hand, Car leasing is a longer-term agreement that may involve months or even years. It's more like a long-term rental, almost like having your own car without owning it.

The Saudi car rental and leasing business is quickly expanding, and there are numerous reasons for this expansion. Saudi Arabia's rising population is a crucial growth factor. As the population grows, more people require transportation to get from one place to another. Some folks may not own a car or may require a second vehicle for a special occasion. This raises demand for car rental and leasing services, which allow customers to borrow a car for a set period of time. Changing customer preferences also aid in the expansion of the car rental and leasing market. Some people prefer not to buy a car because of the associated costs and obligations, whereas others may want to test drive several car types before making a long-term commitment. Car rental and leasing businesses cater to these tastes by providing a flexible and convenient way to use a vehicle when needed.

The KSA car rental and leasing industry is dealing with a number of challenges that are hurting its operations. One challenge is the high degree of competition among car rental and leasing providers. Because there are so many businesses offering comparable goods and services, they must work extra hard to acquire customers. As a result, some firms can have trouble standing out and survive. Another challenge is the cost of buying and maintaining a fleet of vehicles. Car rental and leasing companies must purchase and maintain a large number of automobiles in order to meet consumer demand. The cost of buying and maintaining a car can be unreasonably expensive. It costs a lot of money and time to keep the vehicles for clients safe, clean, and well-maintained.

The COVID-19 pandemic has had a significant impact on the Saudi car rental and leasing business, affecting procedures as well as total demand. During the pandemic, many travel restrictions and lockdown measures were put in place to slow the spread of the virus. As a result, people were unable to move as easily as before, resulting in a decrease in demand for car rental and leasing services.

Fewer people visited Saudi Arabia for both leisure and business purposes due to travel and tourist restrictions. As a result, the number of tourists and business travellers who required car rentals decreased. Many people also chose to stay at home rather than travel, contributing to the decrease in demand.

The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Budget Rent a Car, Hanco Automotive, Heartz Corporation, Lumi Car Rentals, Theeb Rent A Car.

By Type: Based on the Type, KSA Car Rental and Leasing Market is segmented as; Car Rental, Car Leasing.

By Vehicle Type: Based on the Vehicle Type, KSA Car Rental and Leasing Market is segmented as; Economy/Budget, Car/Luxury.

By Vehicle Body Style Type: Based on the Vehicle Body Style Type, KSA Car Rental and Leasing Market is segmented as; Hatchback, Multi-Utility Vehicle, Sedan, Sports Utility Vehicle.

By Booking Type: Based on the Booking Type, KSA Car Rental and Leasing Market is segmented as; Offline, Online

By Region: This report also provides the data for key regional segments of Northern Region, Central Region, Western Region, Eastern 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.