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Indonesia Car Rental Market Size & Share, Report | Ken Research

Market Overview

For international travellers, Indonesia had long been an economical vacation. The arrival of both domestic and foreign tourists, traffic jams, and rising consumer spending on transportation are the main drivers that have boosted the industry’s growth.

The country’s rising demand for car rental services has boosted market rivalry. Some industry players have dominated the Indonesian vehicle rental sector. Fixed rental rates, accessibility, dependability, and security are a few of the elements that have contributed to the organized sectors’ supremacy over the unorganised sector in the region.

Car Rental in Indonesia
                                                                 Car Rental in Indonesia

The car rental industry’s fleet size has increased at an astounding CAGR percentage. The fleet size has increased as a result of rising demand and the availability of more affordable used cars. In 2016, chauffeur-driven services were outsold by non-chauffeur-driven services. The main reason for this was that both local and foreign tourists preferred to rent cars and drive them themselves across the nation.

Report Analysis

According to the research report, “Indonesia Car Rental Market Outlook to 2021 – Rising Tourism and Growing Middle-Class Population to Foster Future Growth” expresses that the market is driven by the increasing number of foreign travellers daily. Other factors that help in the growth of this market are an expansion of fleet sizes, a rising focus of car rental firms on corporate firms, and rising on and off-airport sites in Indonesia.

The market is growing significantly as more smartphone-based internet rental car booking apps are being used. Likewise, growing internet usage has made it easier for firms in the industry to attract a sizable consumer base with the help of mobile applications for online booking for the convenience of users. Additionally, the tourism sectors in cities like Jakarta and Bali are expanding, which is expected to have a beneficial impact on the Indonesian car rental market growth.

Request for Sample Report: –

There are over businesses competing in the extremely competitive and highly fragmented Indonesian car rental market. As of 2016, the top 10 companies in Indonesia’s automobile rental sector collectively held a huge % of the market in terms of fleet size. These businesses compete with one another for customers by offering better rental rates, fleet types and sizes, maximum rental periods, timely maintenance, quick backup in the event of a breakdown, and some other factors.

Some major key players in the Indonesia Car Rental Market are:

  • Blue Bird
  • TRAC
  • Express Taxi
  • Tunas Rental
  • MPM Rent
  • Assa Rent
  • Others

Impact of COVID-19

Before the COVID-19 pandemic, the Indonesian car rental market was expanding at a brisk rate. When compared to other industrialized countries, Indonesia has fewer personal cars per capita; as a result, car rentals have emerged as a popular form of transportation in Indonesia. Furthermore, the Indonesian government’s lockdowns, travel restrictions, and other steps to stem the coronavirus’s spread resulted in a lull in commerce, which was damaging to the car rental market. Meanwhile, the corporate sector’s demand for car rental services fell even further as a result of the WFH rules that businesses all around Indonesia implemented.

Future Outlook

In the impending years, the Indonesia Car Rental Market will grow because of the increased focus of car rental firms on corporate clients, the increase in foreign travellers, etc. The current car rental market participants in Indonesia are in the process of introducing new services and improving entertainment alternatives, such as adding an LED screen for clients to avoid exhausting them in their cities traffic jams and GPS tracking of the journey. Since there are more businesses offering car rental services every year, the kind and calibre of these services are advancing in the market to compete. All of these elements would increase demand for car rental services in Indonesia, and the market is anticipated to expand during a gauge period from 2016 to 2021.

For More Info on the Research Report, Click on the below link: –

Indonesia Car Rental Market Analysis

Related Reports by Ken Research: –

UAE Car Rental, Leasing and Limousine Market Outlook to 2025

Contact Us: –
Ankur Gupta, Head Marketing & Communications


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