Lotte Rental enters Vietnam's car rental market

April 16, 2024 | 18:46

(0) user say

Lotte Rental, South Korea's largest car rental firm, has launched a new service in Vietnam.

Lotte Rental enters Vietnam's car rental market

Its driver-inclusive rental cars will be available in Ho Chi Minh City, Hanoi, and Danang. All vehicles are insured for personal injury, property damage, and third-party liability.

According to Mordor Intelligence, Vietnam's car rental market is expected to reach $884.71 million by 2027, registering a compound annual growth rate of over 13.82 per cent during the forecast period from 2022 to 2027. The market has transformed and experienced tremendous growth over the last two years in terms of users and service providers. Increased air travel for both business and pleasure has significantly increased demand for car rentals.

This growth can be attributed to rising business travel demand, which is being supported by an increase in internet and mobile bookings. Strong demand for chauffeur-driven cars in important cities like Hanoi and Ho Chi Minh City have significantly boosted market income.

Additionally, the improvement of airport infrastructure, an increase in passenger traffic at airports, and a rise in domestic and international tourism were cited as the main factors contributing to the expansion of airport car rental revenue.

However, there are still many challenges for foreign car rental service providers. In early 2024, Indian car rental platform ZoomCar announced that it was pulling out of the Vietnamese market after a year due to the unfavourable market.

Indian self-drive car rental platform ZoomCar ceases operations in Vietnam

The Indian self-drive rental application ZoomCar, which has been operating in Vietnam for nearly a year and a half, has announced the cessation of its operations from May 24.