Lotte Rental to foray into Vietnam's car rental market

July 23, 2024 | 10:42

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South Korea's Lotte Rental Co. will make its foray into Vietnam's long-term personal car rental market in the second half of 2024.

Lotte Rental to foray into Vietnam's car rental market

The South Korean car rental firm made this announcement on July 22, marking a new milestone in its development in Vietnam.

Lotte Rental established its local subsidiary in 2007. Since then, the company has offered commuter buses and business-purpose short-term and long-term rental car services to Korean and global companies in Vietnam.

The company boasts a fleet of approximately 1,300 vehicles, with branches in Ho Chi Minh City, Hanoi, and Danang.

Under its plan, the company will scale up its operation to 10,000 vehicles by 2028 as it ventures into the business-to-consumer long-term car rental market.

Lotte Rental Vietnam has also inked contracts with major local car dealerships to scale up its business-to-consumer long-term rental car business.

The company intends to promote and market business-to-consumer products in collaboration with Kim Lien Group, which runs 17 Mitsubishi showrooms alongside Hyundai Thanh Cong, Toyota, Thaco Kia, and Mazda.

According to a report by 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 2022–2027.

Car rental market accelerates

Vietnam’s budding yet fragmented car rental sector is providing immense opportunities for local and global players to tap into the industry with technological advancements, as well as leading various merger and acquisition activities. Phuong Thu reports.

Business prospects abound for insurance of car rentals

The recent proliferation of car rental and sharing apps has opened up opportunities for a range of new insurance services.

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.

By Vy Bui

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