Japan Car Rental Market Research Report, 2028

Japan Car Rental Market Research Report, 2028

Actual Market Research 30-01-2023 57 Pages Figures : 5 Tables : 10 Region : Asia-Pacific Country : Japan Category : Automotive & Transport Transportation

Rising travel expenditure, rising demand for rental cars, increased internet and smart phone penetration, and a rising population are all driving growth in the Japan Car Rental Market. The minimum driving age in Japan is 18 years old, and you must have a Japanese driver's license or an International Driving Permit (IDP) to rent and drive a car. International driving permits are not issued in Japan and must be obtained in advance in one's home country. Foreigners with a recognised international driving permit may drive in Japan for a maximum of one year. Japan only recognizes permits issued by a large number of countries that are based on the 1949 Geneva Convention. Belgium, France, Germany, Monaco, Switzerland, and Taiwan do not issue permits based on the 1949 Geneva Convention, but rather have a separate agreement that allows these countries' drivers to drive in Japan for up to a year with an official Japanese translation of their driver's license. The Japan Automobile Federation (JAF), Driving-Japan (use voucher code "Japan-Guide22" for a 5 EUR discount), or some of the respective countries' consulates in Japan can provide a translation. In order to drive in Japan, people from other countries whose international driving permits are not recognised by Japan must obtain a Japanese driver's license. The organized sector generates the greatest share of revenue because most tourists prefer the organized sector because they look for legal documents and vehicle certifications to avoid security patrols for safety measures. The market is expanding due to rising demand for on-demand transportation services. Increasing vehicle prices, shrinking parking lots, and high auto maintenance costs encourage people to use on-demand transportation services for trips and daily commutes rather than owning a personal vehicle. As a result of consumers' increased preference for on-demand transportation, Japan's car rental industry has grown. According to the research report, "Japan Car Rental Market Research Report, 2028," published by Actual Market Research, the market is anticipated to grow by USD 2.48 billion by the end of 2028. Economy cars had the largest market share in the car rental market. One of the most important factors to consider when renting a car is its fuel economy, because it has an effect on operating costs. Because of the low maintenance and procurement costs, most market players prefer economy cars for car rental services. Furthermore, economy cars are compact in nature and provide adequate comfort to the passengers. A significant increase in the number of people travelling for business and pleasure across the country is fueling demand for car rental services and propelling the industry's growth. Employees travelling to Japan for business purposes increase demand for Japan car rentals to familiarize themselves with locations and business details. Rising internet penetration across developing as well as developed countries has further helped companies in the market capture a larger customer base with the help of dedicated mobile apps for the convenience of customers. The availability of a broader range of rental car types, such as SUVs and MUVs, boosts demand for car rental in Japan. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the Japanese car rental market. Typical rental fees for a subcompact car are around 5,000 yen per 24-hour period, 7,500 yen for compact cars, 10,000 yen for mid-sized cars, 15,000 yen for full-sized cars, and 20,000 yen for vans. Rates are occasionally raised during peak seasons, particularly in Hokkaido. Many businesses also provide rates for short-term rentals of up to 6 or 12 hours. Fees are sometimes calculated on calendar days (midnight to midnight) rather than 24-hour periods. The above prices typically include unlimited mileage, taxes, and a mandatory minimum insurance fee of 1,000 yen per day that covers damage, injury, and liability but does not cover non-operation fees due to car damage. Details vary by company, but fees for long distances can be quite high; for example, several 10,000 yen for a Tokyo car to be dropped off in Kyoto. It should be noted that most companies do not allow cars rented in Hokkaido to be returned outside of Hokkaido and vice versa. A variety of supplemental options, such as child seats and snow tyres, can be rented with a car, though snow tyres are free in snowy regions of Japan during the winter. During the winter months, many areas of central and northern Japan receive a lot of snow, which can cause roads to be covered in snow or ice. When renting a car in snowy areas, snow tyres are included by default. Foreign tourists with no winter driving experience should avoid renting a car in areas where winter driving conditions are possible. Toyota Rentacar, Nippon Rentacar, Orix Rentacar, Times Car Rental (formerly Mazda Rentacar), Nissan Rentacar, and Ekiren are the top car rental companies in Japan. Each has hundreds of locations throughout Japan, offering cars of all sizes as well as large vans, buses, and RVs in some cases. Most businesses now have English-language online reservation systems or a phone number for reservations in English. International car rental companies such as Budget, Avis, and Hertz also provide car rental in Japan; however, rather than operating outlets themselves, they typically collaborate with one of the leading Japanese car rental companies, and their rates are not always competitive. There are a few independent reservation websites for foreign tourists that work with one or more of the rental companies listed above. Rentalcars.com and ToCoo! Travel, for example, allows English online reservations for multiple rental companies. This is one of the fastest-growing markets for smart transportation services. The key players' adoption of car rental software provides the market with excellent future prospects. Improving mobile car rental apps is a critical factor in global market growth. Car rental software boosts the market's efficiency along with fleet optimization, cost management, and custom reports. One of the most difficult challenges that car rental companies face is providing superior customer service. Lack of information on payment options, long booking times, and car availability are all factors that can stymie demand in the car rental market. The dire need for technology to overcome challenges has resulted in the development of mobile software and various mergers between car manufacturers and car rental companies in order to increase the number of cars. The unavailability of service providers in remote areas is a major market constraint. Car rentals are not available in underdeveloped areas. However, the lack of awareness about car rental services in these areas hampers market growth. Considered in this report • Geography: Japan • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Japan Car Rental market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By car Type • Luxury car • Executive car • Economy car • Sports utility vehicle (SUV) car • Multi utility vehicle (MUV) car By application Type • Leisure/Tourism • Business The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to car rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

Read More

Card image cap

Interested in this report?
Get your FREE sample!

Requirement Gathering & Methodology
Data Collection Techniques
Our Research Team & Data Sourcing
Data Science & Analytical Tools
Data Visualization & Presentation Skills
Project/ Report Delivery & After Sales Services