No need to break the bank and be tied down to one car model for years, long-term car leasing offers users the freedom to easily experience various car models, quickly upgrade, and enjoy lighter initial costs.
Self-drive Car Rental – The ‘Less Money, Better Car’ Solution
Car leasing is a growing trend in developed countries, with a market size of tens of billions of dollars annually. Statistics from the UK show that 1.6 million consumers currently opt for car leasing, with over 20% of new cars in the country being leased.
These numbers reflect the potential for car rental services in the EU. The market for self-drive car rentals in Europe is steadily growing, with over 25% of new vehicles being leased, most commonly in countries like Germany, France, and Spain.
Notably, electric vehicles are experiencing the fastest growth in the car leasing sector, reaching over 40% in Europe in 2023. This growth is driven by the electrification trend in the automotive industry and consumers’ preference for experiencing modern car models.
Car rental services are not only popular with individual consumers but also with businesses looking to optimize their operational costs. In Germany alone, nearly 80% of business vehicles are leased by companies for transportation services.
The US boasts the largest car rental market globally, valued at $12 billion in 2023, with a third of new cars used for leasing. Electric car leasing is especially prevalent, with over 90% of electric vehicles sold being leased.
According to Statistics, the increasing popularity of car leasing in developed countries can be attributed to its cost-effectiveness and flexibility. Leasing offers individuals and businesses a more affordable option by eliminating the need for a substantial upfront payment, thus reducing financial strain. Additionally, lessees are spared from worrying about maintenance, repair, and replacement costs, while still being able to experience modern car models like electric vehicles and easily switch without depreciation concerns.
The Booming Car Rental Market in Vietnam, with Electric Vehicles in the Spotlight
The trend of car leasing is also gaining traction in Vietnam, characterized by high mobility needs, a young population, and a quick embrace of new trends.
A study by Report Ocean projects that the self-drive car rental market in Vietnam will reach a size of $1 billion by 2032, with a compound annual growth rate (CAGR) of nearly 14% during 2024-2032.
Mr. Nguyen Ngoc Thang, a veteran in the automotive industry, observes that while short-term car rentals used to dominate the market, serving mainly tourist destinations, long-term rentals are now gaining popularity as a viable option for those who cannot afford to own a car or seek flexibility in their usage.
“The car rental service is very timely as Vietnamese consumers are becoming more open to the idea of flexible ownership, be it for homes, clothes, luxury goods, or entertainment services. With low initial costs and the ease of switching between different car models, car rental services cater to those who value experiences and businesses that want to minimize investment in their vehicle fleet, reducing depreciation concerns,” Mr. Thang commented on the growing popularity of car rental services in Vietnam.
Electric vehicles, in particular, have captured the attention of both individual and business customers in Vietnam, offering a smoke-free and feature-rich driving experience with advanced safety technologies. The country also boasts a thriving electric vehicle ecosystem, encompassing a diverse range of products across segments and supporting infrastructure such as charging stations and service workshops.
Mr. Thang highlights the emergence of businesses specializing in electric car rental services, such as FGF, as a pivotal factor in the blossoming of the electric car rental market in Vietnam. FGF offers flexible leasing packages, including short-term and long-term options, with a diverse fleet ranging from the VF 5 to the VF 9, catering to the varied needs and budgets of Vietnamese consumers.
“Leasing an electric car is not only financially sensible and convenient but also comes with four ‘no-cost’ benefits: no fuel expenses, no insurance or registration fees, no smoke, and no petrol fumes. This model appeals not only to those embracing a green lifestyle but also to a broader range of consumers,” shared Ms. Tran Thanh Man, a 24-year-old resident of Ho Chi Minh City and an early adopter of FGF’s services.
Observers attribute the burgeoning market for electric car rentals in Vietnam to the strong demand for electric vehicles and flexible ownership options. With the continued growth of the electric vehicle industry and consumers’ evolving preferences, the car rental market in Vietnam is poised to unlock a market size worth tens of thousands of billions of VND.
“Electrifying the Nation: VMS 2024 and the Road to Sustainable Transportation”
According to a seminar organized by the Giao Thong newspaper, the transportation sector accounted for nearly 18% of total greenhouse gas emissions (45.5 million tons of CO2) in Vietnam in 2020, and is projected to reach 89.1 million tons of CO2 by 2030. Road transport has the highest share of greenhouse gas emissions, accounting for over 80%.
Why Do Car Thieves Ignore Electric Vehicles?
According to statistics from the National Insurance Crime Bureau, vehicle theft has been on the rise since 2019. However, thieves seem to have little interest in electric cars.
The Future of Transportation: Embracing the Electric Revolution
With a clear advantage in terms of quality, cost, and environmental protection, dozens of transportation companies in Vietnam are united in their goal of transitioning to green vehicles.
The Green Giant: How Xanh SM is Cementing its Place as an Industry Titan
With a series of recent high-profile moves, Xanh SM has solidified its position as the leading giant in the ride-hailing market. The company’s collaboration with VinFast to lease 5,000 electric cars and its partnership to establish a large-scale service chain in Vietnam are testament to its assertive rise as a formidable force in the industry.
The Ultimate Guide to Resale Values: 15 Cars That Depreciate the Most, with a Surprise Electric Twist
With an impressive 7 electric vehicles featured, the list of the top 15 used cars that have depreciated the most also includes 7 luxury car segment representatives.
