Although the car rental and leasing market only accounted for 4-5% of the automobile market in India as of 2019, it is expected to witness tremendous growth.
With the ongoing pandemic, purchasing a new vehicle may not be a viable option for many. Car rental subscriptions are a secure and convenient way of transportation. Car leasing has turned out to be an increasingly lucrative market in India. On a global scale, there has been a paradigm shift towards car leasing in recent years. The concept of leasing a car for a particular period has paved its way into existence and an increasing number of people are welcoming it. Although the car rental and leasing market only accounted for 4-5% of the automobile market in India as of 2019, it is expected to witness tremendous growth.
The market is projected to grow at a CAGR of 15-20% over the next decade. 2020, however, has seen a major downfall in the global economy owing to the COVID-19 pandemic. Originating in the Wuhan district in China, the virus quickly made its way across the globe and has so far infected more than 3.5 million worldwide. Subsequently, several countries have imposed strict complete/partial lockdown measures in a bid to contain the virus.
In India, the government announced a nationwide lockdown on March 25th, until 17th May, which has brought numerous businesses to a standstill including the Mobility-as-a-Service sector. However, brands in the shared mobility and self-drive mobility sectors are improvising and have come up with extensive measures to ensure maximum safety for employees as well as customers. With lockdown restrictions in place and the general fear of availing shared mobility services such as leasing a car, car rental services are giving businesses more reasons to turn to these services. Here are some reasons why leasing a car amid the pandemic is convenient yet safe.
With growing paranoia and fear surrounding the virus and its implications, car rental brands are taking utmost care in cleaning and sanitizing the cars thoroughly before and after each use. Maintaining exceptional hygiene levels is one of the topmost priorities for these businesses now. Every part of the car from the keys and steering wheel to the seats, gears, and door handles are disinfected and cleaned before reaching the customers’ doorstep.
The world is facing an unprecedented situation and the focus of the people is currently on essential items such as groceries, food, and pharmaceuticals. It would not be possible to purchase a personal vehicle given the scenario. This brings availing a car subscription into the picture. Car rental companies are beginning to offer extended and flexible subscriptions from a minimum of 1 month up to 36 months. With a nominal cost of subscription which is free of maintenance and other additional expenses that come with your personal vehicle, leasing a car has never been more convenient.
Keyless entry systems
The panic around touching any kind of surface is sure to last even post the pandemic. car rental brands have now taken to introducing keyless entry features to minimize physical contact with the keys. Leveraging a strong suite of cutting-edge technology such as IoT, car rental/leasing companies are ensuring an immaculate and safe service for their customers. Some brands are even planning to introduce videos of real-time sanitization of the vehicles for additional customer satisfaction.
For certain industries, such as e-commerce, and car rentals, their on-ground employees are an important aspect of the business. This calls for adequate employee training and regulations regarding safety norms. Shared mobility brands are making sure that ample employee training takes precedence and that employees strictly follow all safety and hygiene precautions. This will ensure that they are better equipped to cater to the needs of the customer whilst safeguarding their own health and wellbeing.
Prioritizing customer and employee satisfaction
Without customers, a business cannot exist or flourish. Using best-in-class new-age technologies such as AI and ML, car rental brands are allowing customers to reach them whenever required. With features such as chatbots, text messages, emails, and calls, they are available to clear any query from customers. Employees are also a key element in the success of any business. With regular salaries, paid leaves, concession on medical expenses, and so on, brands are looking out for their employees in all possible ways.
Despite the difficult time that the world is dealing with currently, the pandemic will pass. But, for the time being, we can certainly say that leasing a car is an easy, safe, and cost-effective way to go.