The UAE Car Rental and Leasing Market is expected to be driven by Changing Customer Preference vis-à-vis Personal ownership owing to Covid-19 coupled with Rising Tourism, High Vaccination Rates enabling Commercial Activities: Ken Research



Key Findings

Historically, public transport has been the preferred mode of travel in UAE. However, the pandemic has provided a shift in consumer preference for the industry with the increased movement of the population towards personal transport due to health reasons.

The change in consumer preference has been aided by greater technological adoption, government regulations, and health concerns.

Consumers are shifting away from traditional methods of booking vehicles for rentals directly from the airport to booking vehicles from any part of the city through the applications of different aggregators.

Major players in the market such as Diamond lease, Avis, Hertz and Shifty and many more, are expanding their fleets as aggregators have entered the market and the requirement for ‘ready-vehicles’ has increased. One way the major players have expanded their fleet size is by acquiring fleets from companies which suffered financially from the effects of the pandemic.

Increasing Car Rentals and Leases due to Covid-19: The demand for rental and leased cars increased after the lockdown imposed due to Covid-19 pandemic was lifted but restrictions imposed by the UAE government on Public transport continued. There was a shift in consumer preference due to various factors. Most noticeably, health concerns by individuals and families moved to rent cars instead of using public transport. The growth of tech aggregators in the market also eased the process of selecting vehicles on rent or lease. Nonetheless, the behavior of individuals and corporates varied as individuals demanded cars for a shorter period of time more frequently than compared to corporates who demanded vehicles for a longer period of time.

Opportunities through Commercial Events and Reviving Tourism: Companies in this space are bullish towards Expo 2020 with the event spanning for a period of over 6 months and with an expected arrival of over 3 million people for the event. In the Limousine space, companies are bullish towards the event due to the increased pre-bookings done by corporates for the event. Furthermore, there is an expectation in the market that tourism will revive back due to the high vaccination rates and the attitude of the government towards this has been seen fairly positive.

Shift towards Electric/Hybrid Vehicles: The Government in UAE has been pushing towards a movement towards electric vehicles in a strong manner by providing both monetary and non-monetary incentives. The most direct of this effects would be experienced by the taxi and limousine companies working in the industry as the government owned companies have already started transforming their fleets to either hybrid or electric ones, providing them with a first mover advantage. In comparison, the rental companies run on a very thin number of Electric Vehicles in their fleet currently but are expected to increase the same in the coming years.

Focus on Value-Added Services: In the near future, similar trend can be observed for both the rental and limousine companies as players are competing by providing superior value-added services instead of heading towards a price war. The services include sliding scale termination policy, pooled mileage services to corporates to after rental services and guaranteed replacement of vehicles during servicing. Easy financing opportunities will be offered to both corporates as well as individuals.

Analysts at Ken Research in their latest publication “The UAE Car Rental, Leasing and Limousine Market Outlook to 2025 – Driven by Reviving Tourism, altered Customer Preference from Public Transport to Personal Cars owing to Covid-19” observed that UAE car rental and leasing market is in a growth phase, and is recovering strongly from the economic crisis after pandemic. The primary factors that are leading to the gains in the sector are the rebounding of tourism, favorable government initiatives in the form of various events such as Expo 2020 and Abu Dhabi Grand Prix for Formula 1. Additionally, shift in customer preference towards rental and leased vehicles aided by increased technological adoption. The UAE Car Rental Market is expected to grow at a CAGR of 8.5% on the basis of revenue for the period 2020-2025F.

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Key Segments Covered for Car Rental

By Emirates

Dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By Types of Car

Economy

SUV

Luxury

By End User

Corporate

Personal

By Source of Booking

On-Airport

Off-Airport

By Duration of Car Rental

0-1 Month

1-6 Months

6-12 Month

Key Segments Covered for Car Leasing

By Emirates

Dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By Types of Car

Economy

SUV

Luxury

Pick-Up Vans

By Type of Car Leased

Corporate

Personal

By Duration of Car Leasing

1 Year

2 Years

3 Years

More than 3 Years

By End User

Facility Management

Industrial Sector

Food Services

Logistics

Others

Key Segments Covered for Limousine Car

By Emirates

Dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By Limousine Companies in Emirates (Number of Companies)

Dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By Types of Car

Standard

Large Sized

Premium

Ultra Luxury

By Business

Event

Non – Event

By Source of Business (for Cab Companies)

Airport

Non – Airport

By Source of Business

Cab Companies

Non – Cab Companies

By Source of Payment

Direct from Corporate

Corporate Payments

By Purpose of Limousine

Leisure

Corporate

Companies Covered

Rental and Lease Companies

Thrifty Rent a Car

Emirates Transport

Hertz

Diamondlease

Massar Car Rental

Leaseplan

Shift Rent a Car

National Car Rental

Avis Rent a Car

Europcar

Budget Rent a Car

Fast Rent a Car

Dollar

Nirvana Travel and Tourism

Auto Rent

Limousine Companies

Dubai Taxi Corporation

Emirates Transport

City Link Limousine

Private Limousine

Avis Limousine

Transguard Limousine

Limoinuae

National Transport

Sharjah Roads and Transport Authority

Hot Wheels Limo

Global Wings Limousine

City way Limousine

Royal Falcon Limousine

Insaf Limousine

Onak Limousine

Dubai Exotic Limo

Major Dealer

Al Habtoor

Al Futtaim

Al Rostamani

Al Tayer Group

Ali and Sons

Key Target Audience

Car Rental companies

Car leasing companies

Limousine Companies

Tourism Industries

Tour and Travel Aggregator

Automobile companies

Cab taxi companies

Cab Aggregators

Technology Provides

Investors and Venture Capitalist

Government Associations

Time Period Captured in the Report:-

Historical Period – 2015-2020

Forecast Period – 2021-2025

Key Topics Covered in the Report

Overview of the UAE Car Rental, Leasing and Limousine Industry

Government Regulations, Initiatives and Procedure to Start Car Rental & Leasing Business

Car Rental Market Overview

Car Rental Market Size

Car Rental Market Segmentation

Future Outlook of the UAE Car Rental Market, 2020-2025F

Car Leasing Market Overview

Car Leasing Market Size

Car Leasing Market Segmentation

Future Outlook of the UAE Car Leasing Market, 2020-2025F

Competition in Car Rental and Leasing Market

Company Profiles of Rental and Lease Companies

Limousine Car Market Overview

Limousine Car Market Segmentation

Competition in Limousine Service Market Overview

Future Outlook of the UAE Limousine Car Market, 2020-2025F

Covid-19 Impact on the Industry & the way forward

Analysts’ Recommendations

For More Information on the Research Report, Refer to Below Link:

UAE Car Rental, Leasing and Limousine Market: Ken Research

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Contact Us:

Ken Research

Ankur Gupta, Head Marketing & Communications

support@kenresearch.com

+91-9015378249



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