Self-driving car rental space is one such segment which is gaining cache among consumers. The cost of owning a vehicle has increased due to implementation of insurance law’s and new vehicle safety norms. More than half of country's populace are already questioning the need for purchasing and owning a car. Along with this, the liquidity crunch has created a shortage of financing options from banks and costly loans for potential buyers. Thereby, contributing to a low customer sentiment towards purchases of cars and spurring demand for shared mobility services.
For the uninitiated, self-driving car rental services allow users to lease a car for a stipulated time after paying a decent rental & deposit charges. India's youth are driving a fundamental shift toward shared mobility services. Car mobility segment is gaining ground in a country where about 600 million people, more than half of our population, is under the age of 25.
The year 2030 India will witness an expansion of shared mobility services and is expected to emerge as a leader in shared mobility. The proportion of shared miles will reach 35% of all the miles travelled in the country, and this will further increase to 50% by 2040. The new option of subscribing a car is becoming a preferred choice as compared to conventional car buying habits.
Multiple factors will potentially boost subscription demand. “Average car utilisation rate in India is around 5%. Taxi aggregators have moved it up to 15%. Subscription model will improve it further. In a volatile uncertain economic situation, subscription offers a convenient and flexible way to have a car without feeling stuck. The service is particularly appealing to young buyers both locals, short time residents and migrants, who prefer to rent rather than buy and often can’t afford the hefty down payment.