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Uzone.id – It cannot be denied that currently, the automotive industry in Europe is moving towards electric vehicles. So how do you see the current electric car rental business opportunities in Europe?
The electric vehicle industry in Europe is experiencing rapid progress, this surge is fueled by a perfect storm of factors: supportive government policies, a growing focus on environmental responsibility, and exciting technological advancements.
In 2022 alone, electric car sales in Europe skyrocketed to a whopping 2.3 million units, a staggering 63% increase from the previous year. And experts predict this electric car sales trend is here to stay, with even more growth on the horizon.
Electric Car Rental Business Opportunities
Electric vehicles are buzzing with popularity, and the car rental industry is taking notice. With a growing number of people wanting to experience the benefits of electric cars, a new and exciting business opportunity is emerging: electric car rentals.
“Demand for electric car rentals in Europe is predicted to increase drastically in the coming years. This is driven by factors such as supportive government policies, increasing environmental awareness, and technological advances,” said the CEO of BMW Group, Oliver Zipse at a press conference in Munich moments ago.
The high demand for electric car rentals is expected to increase rapidly in the coming years. This is due to the factors mentioned previously, where government policies are very supportive of opening up this business opportunity.
This high demand can also result in higher profits. Electric car rental is estimated to generate much higher profits than conventional car rental. The reason is that electric cars have much lower operating costs than regular cars and electric car renters can be charged a premium rate every time they use this service.
“Electric car rental has the potential to generate higher profits than traditional car rental. Electric car operating costs are much lower, and many car rental operators charge premium rates for electric cars,” uttered Executive Director of GreenMobility, Anna Borg.
Regarding the impact on the environment, electric car rental renters are of course people who care about reducing gas emissions and air pollution. Using electric cars allows customers to enjoy all the benefits of car rentals – exploring new places, running errands, or taking a road trip – while minimizing their environmental impact.
This eco-conscious approach can also give your car rental company a positive image, making it more attractive to customers who value sustainability.
“Offering electric car rentals can improve the image of car rental companies and attract environmentally conscious customers. The business also contributes to reducing greenhouse gas emissions and air pollution, in line with sustainability commitments in Europe,” said Frans Timmermans, Executive Vice President of the European Commission.
Even though the things above look beautiful, opening an electric car rental business has its challenges. A great opportunity, of course, but several challenges must be faced.
One challenge is the availability of charging infrastructure. Currently, there are not many electric charging stations in European countries which of course makes renters uncomfortable when traveling long distances.
Electric vehicles are undeniably exciting, but their current price tag throws a bit of a wrench into widespread adoption. For both car rental companies and everyday consumers, the cost of electric cars is still significantly higher than traditional gasoline vehicles.
The good news? There’s a strong possibility that electric car prices will come down in the next few years, making them a more accessible option. The government can invest in building charging infrastructure and the automotive industry needs to produce electric cars that are more affordable for consumers.
While exciting, adopting electric vehicles comes with additional considerations. Car rental companies need to invest in building an electric fleet and upskilling their staff to ensure smooth maintenance and rental processes specific to electric cars.
