India: rental companies offer cars as low as 73 cents/hour image

The country is one of the most promising emerging markets in the Asian region and with the population currently switching from two to four-wheel transportation, affordability is one of the key elements.

So, no wonder that automakers very active on the market try to offer very cheap alternatives to the up and coming middle-class that used to spend almost nothing on two-wheel transportation. India is the land of the Tata Nano, the cheapest car in the world and it’s now also the country that offers dirt-cheap car rentals that start below the psychological threshold of $1 an hour.

Car rental companies that emulate the likes of Zipcar Inc. and founded in India in the past two years have achieved the feat. For example, Zoomcar India Pvt., a car-sharing service established by two Americans has hourly rates that begin at 45 rupees (73 U.S. cents) for the electric Mahindra Reva e2o hatchback. “In the next two to three years, demand for such services will explode, at least in the metros,” says Abdul Majeed, a partner at PricewaterhouseCoopers LLP in Chennai.

The services are gaining popularity especially among young people in India who start their work years but still don’t want to go through the process of owning their own car – though they find themselves poorly served by the public transportation.

Via Bloomberg