Car Rental Trends for 2025 – EVs, SUVs & What Tourists Prefer

As the travel industry bounces back stronger than ever, the car rental market in India is undergoing a major transformation. With sustainability, flexibility, and convenience driving consumer behavior, car rental companies are adapting fast to stay competitive. The year 2025 is shaping up to be a landmark for the industry, with clear trends emerging around electric vehicles (EVs), sport utility vehicles (SUVs), and evolving tourist preferences.

This guide explores the top car rental trends in India for 2025, shedding light on what travelers want and how the market is shifting.

Growing Demand for Electric Vehicles (EVs)

One of the most significant shifts in car rental trends India is the rapid rise of electric vehicles. Driven by both government incentives and increasing environmental awareness, EV adoption is soaring.

Rental platforms across major cities like Delhi, Mumbai, Bengaluru, and Hyderabad are integrating EVs into their fleets to meet this demand. Brands like Tata Nexon EV, MG ZS EV, and Hyundai Kona Electric are now commonly available in rental options, offering tourists a cleaner, quieter, and more cost-effective way to travel.

Moreover, India’s push for electric mobility—with government support under schemes like FAME-II—means improved charging infrastructure is making EV rentals more practical than ever.

Key reasons EVs are trending in rentals:

  • Zero tailpipe emissions

  • Lower operating costs for renters

  • Exemption from certain tolls and taxes in some states

  • Increasing availability of charging stations across tourist destinations

SUVs Remain King for Group and Adventure Travel

While EVs represent the future, SUVs remain a favorite for the present, especially among domestic and inbound tourists seeking comfort and versatility.

In 2025, tourists are leaning towards SUVs for road trips across diverse Indian terrains—from the Himalayan foothills to the beaches of Goa. Cars like Toyota Fortuner, Mahindra Scorpio-N, and Hyundai Creta are frequently rented for family vacations, adventure tours, and intercity travel.

Rental companies are expanding their SUV fleets due to:

  • Increased demand for vehicles with more space and better suspension

  • Tourists preferring self-drive SUV options for flexibility

  • Off-road and hill station travel where ground clearance matters

The SUV boom aligns well with the 2025 travel trend of people opting for domestic exploration over international travel, especially in a post-pandemic world where road trips are seen as safer and more intimate experiences.

Tourists Favor Self-Drive and App-Based Rentals

The era of chauffeur-driven cars is not over, but self-drive rentals are growing fast, especially among millennials and Gen Z travelers. Digital-native tourists prefer the autonomy of driving themselves, and app-based platforms like Zoomcar, Revv, and Myles make the process seamless.

2025 travel behaviors indicate:

  • Tourists want 24/7 access to bookings via mobile apps

  • Keyless entry and digital payments are no longer optional—they’re expected

  • Subscriptions and flexible pricing models are appealing to long-stay travelers

This tech-driven approach not only enhances the user experience but also builds trust through transparent pricing, instant support, and real-time vehicle tracking.

Intercity and Airport Pickups Gain Popularity

In response to hybrid work and “workation” trends, many people are combining business with leisure travel. This has led to a rise in one-way car rentals and airport-to-hotel pickups. Companies now offer custom packages where travelers can pick up a car at one city and drop it off in another, supporting the modern nomadic lifestyle.

For example, someone flying into Jaipur might rent a car to drive through Rajasthan and drop it off in Udaipur—a convenience that wasn’t widely offered just a few years ago.

Sustainability and Travel Preferences Are Shifting

With climate consciousness on the rise, Indian travelers are increasingly factoring in the environmental impact of their journeys. Car rental companies are responding by offering carbon-offset options, EV-exclusive packages, and encouraging carpooling.

Key shifts in traveler preferences:

  • Preference for eco-friendly fleets

  • Higher expectations for vehicle cleanliness and hygiene

  • Custom packages tailored for nature tourism and heritage routes

Integration with Tourism Ecosystems

In 2025, leading car rental providers are not just offering cars—they’re becoming travel partners. By collaborating with hotels, local guides, and tourism boards, these companies offer bundled experiences. A traveler might book a car rental with pre-loaded GPS routes to major attractions or even get discounted entry passes through rental packages.

This value-add strategy is especially important in India’s competitive market where car rental trends India are increasingly influenced by customer experience rather than just pricing.

FAQs

Q1: Are electric vehicles costlier to rent than petrol cars in India?

Not necessarily. While base prices may vary, EVs often come with lower running costs, tax benefits, and discount offers that make them competitive.

Q2: Is self-drive safe for tourists in India in 2025?

Yes. With improved roads, advanced navigation tools, and responsive customer service, self-driving has become more accessible and safer for tourists.

Q3: Which Indian cities offer the best options for EV car rentals?

Major metros like Delhi, Mumbai, Bangalore, Pune, and Hyderabad currently offer the best EV rental infrastructure and options.

Q4: What documents are needed for renting a car in India?

A valid driver’s license (Indian or international), ID proof (like passport or Aadhaar), and in some cases, a credit card for security deposit.

Q5: Can I rent a car for intercity travel in India?

Yes. Most rental companies offer intercity travel options with flexible drop-off points and one-way rental packages.

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