Kuwait Car Rental and Leasing Market Forecast to 2020
Posted on 04 August 2016 by KenResearch
In 2015, around majority of the revenues in the country were generated through car leasing services (Car rental greater than 6 months). Kuwait car rental market has witnessed an increase in the car leasing services on account of rise in corporate leasing.
Car Rental Industry in Kuwait has been segmented on the basis of Car leasing, short term Car rental and Chauffeur driven car rental market. The market has witnessed an increase in terms of car leasing segment owed to the increase in “operational rent”, in case of the people who wish to hold a new car.
The city is also home to various work expats and universities that have led to a higher demand for long term-car rental market. Majority of the car repair, maintenance and part servicing is located in Shuwaikh.
All Mulla has dominated the market for rental cars in Kuwait with a high share in the total fleet of the car rental industry in the country. The firm is one of the largest diversified privately held business groups in Kuwait.
Chauffeur driven car rental market has been dominated by the on airport car rental since most of the people which arrive at the airport opt for the chauffeur driven cars. These people generally do not have the proper documentation or have visited the country as tourists and do not know much about the country
A major portion of the online bookings is either done through company website or through e-mails whereas phone calling is also one of the popular means of booking for car rental services in the country
Levitation in demand for car variety and frequent requirement for change of car is likely to lead the car rental companies to increase their fleet size in future. Majority of the car rental companies are likely to purchase old / used cars for the purpose of renting rather than buying in a new one in order to save their operating expenditure.
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Ankur Gupta, Head Marketing & Communications