September
2021|UAE News
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.
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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.
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
- AutoRent
Limousine
Companies
- Dubai Taxi Corporation
- Emirates Transport
- CityLink Limousine
- Private Limousine
- Avis Limousine
- Transguard Limousine
- Limoinuae
- National Transport
- Sharjah Roads and Transport Authority
- Hot Wheels Limo
- Global Wings Limousine
- Cityway 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
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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 Research Report
Related
Reports
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-9015378249
