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Details about rent a car in India

3 months


Tourism and transport are a complementary service to each other. Along with the right transport service, your tour planning can be convenient, time-consuming, cost-effective, and unforgettable. The type of vehicle to be hired depends on your purpose of traveling as a family vacation, a party tour, an official tour, a meeting with the delegate, an adventure trip, and several others. The road trip is a very exciting and adventurous way to explore Indian geographical and landscape beauty, considering the rent a car in India? Known for crowded, vibrant cities and truly insane traffic, India can be an intimidating place to drive. On the other hand, if you’re looking to explore the countryside and smaller towns and villages, having your own wheels can be a fun and liberating way to get around. Few travelers only rent a car in India. It is more popular for foreigners to rent a car in India with a driver who knows the back roads, the shortcuts, and the very lax rules of the road. If you want the comfort of a personal vehicle, but you don’t want to buy a car or hire a taxi every time you need to get around, then rent a car in India might make sense. This is particularly fact if you’re traveling to a new city and only have a car for a couple of days. Car rental companies have been around in India for a while now, but they’re beginning to go online and add more affordable options.

Handsome mature businessman getting in taxi

Overview of car rental Business

The first car rental company began in Germany in 1912 under the name of Sixt, which is now one of the largest car rental companies in the world. Then in 1916, Joe Saunders began to rent Ford’s Model T, and a local car rental company was founded in Nebraska. The basic concept was to provide private transportation to local & visiting businessmen so that they could travel about in comfort and privacy for their business trips. That’s what the U.S. car rental company began, and the rest is a major history. In 2016, the world car rental industry was worth $58.26 billion and was projected to grow to more than $124.56 billion by 2022. Until 2010 and 2011, the car rental industry in India was totally unregulated and unorganized. People used hyper-local taxi and cab aggregators to go on outstation journeys.

Why hire a car and driver?

Why wouldn’t you just hire a car yourself? Or do you take the train or fly? Or do you take a tour? Hiring a car and a driver is perfect for self-employed travelers who want versatility and control over their itineraries and ease of travel. You’re going to be able to pause at places that concern you, and you don’t have to think about how to get around. Though possibilities to rent a car without even a driver are growing in India, self-driving is not suggested for factors of mental health and safety, as roads are mostly in bad condition and traffic laws are not often follows in India. Train and plane travel is useful to cover large distances with nothing much to see in between. However, if you’re planning to explore different destinations in a state like Rajasthan or Kerala, then hiring a car and a driver makes the most sense.

The Current Potential of rental car service

Businesses increasingly realize the lucrative opportunities offered by the growth of the car rental industry across India’s length and breadth. The interesting thing to remember is that only 10% of the car rental industry is being organized. The remaining 90% remains a potentially unorganized market waiting to be exploited by technology-driven solutions. This poses an immense opportunity for both self-driving car rental and driver-driven car rental services.

Simultaneously, social sharing, smart phones, increased car protection, and on-demand affordable housing have helped push cars through car rental services. Compared to tour packages, travel enthusiasts now tend to explore the land at their own speed and timetable, which can only be provided by car rentals.

Basic features in car rental app

  • Check the various types of cars available in the vicinity.
  • Using GPS to map the exact location
  • Set pick-up/drop position
  • See ETA and information for the driver.
  • One-time addition of user contact information and payment details
  • Button SOS

Location services

Apps like real-time monitoring help the company identify the driver and the vehicle. It also benefits customers when they book a bus.

Seamless onboarding

Enable users to log in or sign up quickly and start booking a ride in seconds. Provide support for the social login process.

Push notifications

Real-time alerts for customers to keep up-to-date on crucial stages from confirmation of booking to payment.

Review system

Get valuable input from the customer about their car rental experience and continually enhance the service.

Payment integration

Ensure that all major forms of payment are included in the vehicle rental app creation process. These include debit card, credit card, net banking, and new age payment methods such as mobile wallets and UPI.

How is a Technology Partner supporting your Car Rental Business?

  • Many vehicle rental companies concentrate on price-based differentiation. Instead, they should distinguish between the value given to customers. This critical need can be fulfilled through the on-boarding of a professional car rental technology specialist with extensive experience in designing state-of-the-art logistics applications for companies and start-ups.
  • With technology, the problems of shorter registration time, precise geo-location marking, and quicker check-out can be easily eliminated.
  • The vehicle rental environment is complicated by a lot of interactions between car rental firms, drivers, and passengers. With the aid of technology, a smooth engagement process can be made possible and thus contribute to a better experience for all.

This way, technology allows car rental companies to raise profits while keeping unnecessary costs down. It also brings tremendous value to consumers with its innovative safety and travel comfort.

The Indian car rental industry has seen unprecedented growth. The traction is driven largely by the growth of the on-demand economy, which has also made its way into the vehicle rental industry. By integrating retail concepts into the car rental sector (omnichannel market base, location-based value addition, mobile-centric operations, 24 x 7 tech support, and social media integration), car rental will further improve their scope.

What are the key tips to rent a car in India?

Book from home

Don’t wait until you rent a car in India. It’s going to be easier to book your car from the United States before you leave. The further ahead you book your car, the greater the chance to land the offer so that you can look out for the price drops.

You need an International Driving Permit.

You must either be a permanent resident with an Indian driver’s license or have a Foreign Driving Permit to drive in India. This document is actually a translated version of the driver’s license given by your state and can be purchased from the AAA. Give yourself some time to apply before you leave on your vacation. On the left, you’ll drive. India is a former British colony, and as a result, a position where people drive to the left.

Pay for the rental in rupees.

While it will seem easier to charge in dollars instead of rupees, this choice will cost you more in the long run. Pay in local currency to avoid Volatile Currency exchange costs. If you want to pay in U.S. dollars, the rental car company can translate the local currency’s payment price on your behalf. But this process is unnecessary since your credit card company will process the transaction in any currency, and you will pay for the non-convenience through the nose.

Double-check the insurance policy

Before you leave for India, please contact your credit card provider to see what accident coverage they are providing on car rental abroad, if any. Generally, a car rental contract in India includes fire insurance and third-party liability. These extra costs would immediately be added to the cost of your rent.

A self-drive rental car comes with a hefty deposit.

If you choose to drive a hire vehicle yourself, you’ll have to pay a deposit that can be anything from $750 to $3000, depending on the type of car you’re renting. In case of injury, the deposit will be forfeited.

Road rules are more of a guideline.

You may think you’ve seen your fair share of crazy drivers at home in the US, but drivers in India are likely to take the cake. Don’t expect your fellow drivers to stay in their lanes, follow traffic lights, or even stay on the road (the sidewalks are a fair game). There is a justification for a steep deposit.

To get a rental car in major Indian cities is a nightmare.

Traffic is notorious. Few drivers abide by the rules of the road, and parking can be extremely difficult. Be warned that car theft is more frequent in India than in many other areas, which is another explanation for such a large deposit. If you require a car to explore the countryside, arrange your pick-up time when you’re ready to leave the area.

Renting a Car with a Driver in India

Is renting a car with a driver beginning to sound like a reasonable option?

It’s much more common in India than renting a self-driving vehicle, and it doesn’t have to break the bank. When you rent a car with a driver for a day or even a couple of days, you don’t have to pay the big deposit, and you’re going to benefit from getting a local behind the wheel.

Here are some things to consider when you hire a car and a driver

Rates vary

Anything from the size of the vehicle to if the driver speaks English to the number of days and distance traveled relates to the regular rental rate of the car and the driver. Do some research ahead of time and be sure to find a good company. Rates will typically include gasoline, insurance, tolls, state taxes, parking, and food for the driver. For a multi-day trip through India, the rates would also provide lodging for the driver.

Tip your driver

It’s customary for travelers to tip their driver on a daily basis. Depending on how happy you are with his services, 200 to 400 rupees per day is reasonable.

Your driver is not your personal tour guide.

Although your driver would be pleased to get you to every destination and answer any general questions, you should not expect a personal tour guide who is well versed in every historical detail of the major sites and willing to make suggestions for the restaurant.

Your driver won’t accompany you inside the sights and attractions; he’ll wait in the car and be able to take you to the next destination when you’re ready.

How much the price to rent a car in India?

The price would depend on the car model and whether your driver speaks English (these drivers normally cost a little more). The fee is per kilometer, and you will still have to pay a

minimum of 250 or 300 kilometers a day, regardless of the distance traveled. The prices for each form of a car differ by business, state, and city.

Rates are for journeys from destination to destination. They typically include taxes on gasoline, insurance, and state taxes. Parking and a daily allowance for food and lodging for the driver (200-500 ropes per day could be extra. The rental prices for sightseeing throughout the city are lower.

Small Car 

Usually, the Tata Indica is air-conditioned, starting from around 10 rupees per kilometer.

It’s cheaper to hire a new car than one of the old atmospheric ambassadors, which will cost you about 15 rupees per kilometer. These cars fit easily with two passengers, but they can fit four.

Medium Car

Usually, the Toyota Innova SUV or the Mahindra Xylo SUV, starting from 13 rupees per kilometer. These cars fit four passengers comfortably, but they can fit six.

Large Car 

Usually, a Tempo Traveller, starting at 18 rupees per kilometer. These special vehicles are like minibusses and can carry up to 10 passengers. Greater ones are probable.

Where to hire from?

Any tour company in India, like most hotels, will be able to arrange a car and a driver for you. However, if anything goes wrong (such as breaking down a vehicle or misunderstandings), you’re going to want the company to be responsible for it, not the driver. Hotel rates would also be more expensive. So, it’s best to book via a reliable business. If required, these companies will also arrange hotels and guides.

Many recommendations are given below at the end of the article. Most tourists launch their trips from Delhi to Rajasthan, so these places have a lot of choices. Be sure to do a lot of homework and make comparisons to determine what suits you best. There are respectable independent drivers with their own cars. You’re going to need the right contacts to locate them, though.

Where is the driver dining and sleeping?

Drivers earn a regular allowance (usually a few hundred rupees) from their employers to cover the cost of their food and lodging. Some hotels provide special accommodation for drivers. However, drivers will usually sleep in their cars to save money.

International tourists who are used to equality often feel that their drivers should dine with them, particularly at lunch, if they’re on the road. However, this is not the standard in India. Drivers have their favorite places to eat and may not be comfortable joining you for social reasons (India is very hierarchical). It doesn’t hurt to ask. Don’t be shocked if they are hesitant to accept the invitation.

What are the important points to keep in mind when you rent a car in India?

  • Road conditions in India are complex and can be very bad in some areas. It will take you longer than planned to reach your destination, so take this into account when preparing your itinerary and allow plenty of time. Don’t always believe the travel times shown on Google Maps!
  • If comfort is a consideration, it’s worth paying more to get a better vehicle like the spacious Toyota Innova or Mahindra Xylo. Roads that are in bad shape appear to be bumpy, and the lack of proper suspension in older cars would be obvious. Also, most people choose to choose an air-conditioned car because the roads can be dusty and the weather hot.
  • The tax on vehicles crossing national borders can be expensive, so check if this is included in the price quoted.
  • The car will have to return to its starting destination (at your expense), so take this into account when preparing your trip and budget.
  • Drivers are not acting as guides. They’re going to take care of your itinerary, get you to each destination, and answer general questions. They’re not going to accompany you inside monuments and attractions, though.

Other Things to Expect

Your driver may invite you to meet me at home or have dinner with your family. This can be viewed as a wet and welcoming gesture.

Be mindful, however, that drivers generally come from lower-middle-class backgrounds, and it can be done in the expectation that you can give them something. Many tourists feel obligated to contribute some money/financial assistance. If you’re fine with this, particularly if your driver was honest and helpful, there’s no problem!

Your driver is likely to recommend that you shop in certain stores and eat in certain restaurants. It’s because he’s going to get a fee from those places or get free food. It can become tiresome after a while, particularly if you’re not interested in doing so. Be strong in the fall.

Is it a hassle-free?

But is renting a car such a hassle-free experience as driving a car of your own? Renting a car is a lot, like booking a hotel room. When you book hotels online, you’ll see pictures of big clean rooms with all the requisite amenities, but the truth does not match what’s advertised. You should check the car for paperwork such as registration, notice the odometer’s reading, check if the tank is full and if there are any signs of damage to the vehicle-including minor scratches.

Promising future of the car rental industry in India

The car rental market in India is rising rapidly due to several factors linked to the easy availability of cars without the difficulty of owning one. According to an analysis report by Statista of the Indian car rental industry, revenues from the car rental sector in 2018 amounted to more than US$250 million and are projected to rise by 14.3 percent to US$570 million in 2023. Currently, the number of users for car rentals is rough. 12 million in 2018 and is projected to expand to more than 16 million by 2023. These facts feed and reaffirm optimism about the car rental industry in India, along with its growth parameters, make it a very lucrative industry to invest in. Also, the consumer penetration rate was just 0.8% in 2017, indicating a great deal of room for all market players to expand. A large population is still indifferent to the idea of self-driving car rental. That is where these companies will step in to increase people’s awareness of this phenomenon and thereby quickly broaden their user base. If all the figures and estimates are to be taken into account, then the car rental space is definitely the place for investors and new businesses. Today, there are several car rental companies in India catering to self-driving and driver-driven audiences, making it one of India’s fastest-growing industries. According to the report, the car rental industry in India is growing at a compound annual growth rate of 35 percent and is expected to go up further. By 2022, it is projected to be worth more than INR 1000 billion.

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