|Major cities|| |
Mumbai, Kolkota, Chennai, Bengaluru, Hyderabad, Ahmedabad
English (en-IN), Hindi (hi), Bengali (bn), Telugu (te), Marathi (mr), Tamil (ta), Urdu (ur), Gujarati (gu), Kannada (kn), Malayalam (ml), Oriya (macrolanguage) (or), Panjabi (pa), Assamese (as), Bihari (bh), Santali (sat), Kashmiri (ks), Nepali (macrolanguage) (ne), Sindhi (sd), Konkani (macrolanguage) (kok), Dogri (macrolanguage) (doi), Manipuri (mni), Sino-Tibetan languages (sit), Sanskrit (sa), French (fr), Lushai (lus), Indic languages (inc
1,581.59 USD (2015)
|Unemployment rate|| |
|Main industries|| |
GDP Composition by Sector:
INR Indian rupee
|Interest rate|| |
|Total Car park|| |
32 cars per 1000 inhabitants
|New vehicle registrations (Cars, LCV, Trucks)|| |
New Car Sales 2015 : 3,061,406
|Top 5 brands (total market)|| |
4.1 Car Taxation
India has a state-specific car tax (2% to 18%)
4.2 Income Tax - Taxable person
Any person who registers a vehicle is considered a taxable person (physical or legal person)
4.3 Company Car Taxation
Company cars and related costs are 100% deductible from the CIT
4.4 Income Taxes
4.5 Electric vehicles
4.6 Future developments
4.7 Legal background
India has 5 types of duties mouning to 125% of the value of the vehicle
4.9 Electric vehicles
Company Car entitlement
Most often based on job need
Which sectors provide most fleet cars?
Agriculture, Chemical Industry, Pharmaceutical Industry
Entry / Junior level: Maruti Suzuki Swift Dzire, Mahindra Scorpio, Toyota Innova
Senior sales / mangement level: Toyota Innova, Mahindra, Maruti,
Executive level: European makes
|Overview of penetration of funding methods (buy or lease statement)|
|Type of suppliers (captive versus multibrand, international versus local…)||Finance leasing is offered by financial institutions, Operational Leasing by (mainly European) Leasing Companies|
|6.1 Outright purchase:|
|Definition||The acquisition of a vehicle and the creation of a fixed asset on the balance sheet|
|Pro’s and con’s||Practically difficult to manage.|
|Economic & legal ownership||Full ownership, included Risks asd Rewards|
|6.2 Renting (Finance lease) :|
|Definition||Finance Lease is called "Hire Purchase"|
|Pro’s and con’s||Useful life and depreciation are submitted to strict rules|
|Economic & legal ownership||Risks and Rewards are transferred to the lessee, legal ownership remains with the lessor|
|6.3 Full service leasing (operational leasing)|
|Definition||Is a lease that does not transfer risk and reward to the lessee|
|Pro’s and con’s||Fully deductible from the CIT|
|Economic & legal ownership||Ownership remains with the lessor|
|Business practices||Operational Lease is still marginal (less than 5%)|
|6.4 Fleet Management|
|Definition||Uncommon product in India and refers most often to the practical handling of vehicles (transport, cleaning, chauffeur services,…)|
|Pro’s and con’s|
|Economic & legal ownership||The fleet management company has no claim of ownership on the vehicle.|
|6.5 Short term rental|
|Definition||STR is popular, but not easily availabel in India. Small local players dominate the market next to a limited number of larger international players. Although easy to book for a single car, it's still complicated to order larger batches of vehicles|
|Pro’s and con’s||P:ricing is very local, as taxation in India is not harmonized. Vehicles can be rented with or without English speaking driver. Prices are not cheap, but service is personal and good, in general.|
|Economic & legal ownership|
|6.6 Other funding methods|
Fuel type segmentation
Fuel price evolution
2012: 0.65 USD/L , 2014: 0.54 USD / L, 2016: 0.53 USD / L, 2018: 0.47 USD / L
2 main fuel suppliers dominate the market (Hindustan and IOC). As they divide the market in 2 monopoly type of segmentation, it's difficult to obtain discount schemes.
Fuel card solution
Available and good
TCO is not yet a recognized concept in India. Buyers focus on purchase price and compare total of lease fees with a purchase price.
9.1 Accident Rate
2013 Data (most recent data available)
Road fatalities per1000,000 inhabitants per year : 16.6
Road Fatalities per 100,000 motor vehicles: 130.1
Total Fatalities latest year (WHO Report): 137000
One serious road accident in the country occurs every minute and 16 die on Indian roads every hour.
1214 road crashes occur every day in India.
Two wheelers account for 25% of total road crash deaths.
20 children under the age of 14 die every day due to road crashes in in the country.
377 people die every day, equivalent to a jumbo jet crashing every day.
Two people die every hour in Uttar Pradesh – State with maximum number of road crash deaths.
Tamil Nadu is the state with the maximum number of road crash injuries
Top 10 Cities with the highest number of Road Crash Deaths (Rank –Wise):
9.3 Insurance Suppliers
Bharati AXA Car Insurance, Royal Sundaram Car Insurance, Reliance Car Insurance, TATA AIG Car Insurance, Bajaj Allianz Car Insurance
9.4 Telematics Availability
Vehicle telematics is gaining popularity mainly due to its advantages
such as safety, information, navigation and remote diagnostics
> The Indian telematics industry is highly competitive
> The competitive environment is further expected to intensify with increasing product extensions, more advanced offerings, technological innovations and M&A
> Trimble is the market leader with 30% market share.
The top three players (Trimble, Arya Omnitalk and CMC Technology) account for ~60% of the total market share
> To remain competitive in the market, vendors not only have to develop new technologies but also keep abreast of global developments and emerging technologies that could potentially impact their product portfolio
10.1 Trends in Taxation, Legislation
11.1 Traffic Conditions
Car Rental Market in India is seeing rapid expansion amidst increasing growth in the organized sector coupled with increasing penetration rate of internet & increase in level of convenience in the urban middle class population. Moreover the rampant investments towards the technology and investments by major companies has contributed considerable growth in this market.
India Car Rental market has been growing at a moderate rate over the last five years with growth being majorly driven by increasing urbanization rate, increasing level of convenience among the middle class population, surging penetration rate of Internet and major investments propelling the growth in the India Car Rental Market. The market is anticipated to witness a moderate growth over the next few years. Moreover, the market size of India Radio Taxi is anticipated to witness considerable growth over the next few years. The growth in this market is accompanied by the surging penetration of the radio cabs in the tier II cities, increase in influx of tourist and high level of convenience being associated with the cabs.
According to the research report, "India Car Rental Market: Trends, Opportunities and Forecasts (2016-2021)" - (By Value, By Region, By Segment - Radio Taxi, Corporate Rental, Aggregators and Affilators; Key Players; Market Share and Dynamics)", the market is dominated by unorganized market controlling 89% of market share as of 2015 and is anticipated to grab 75% of the market in 2021, accompanied by the increase in growth rate of radio taxi.