What is the place of electric vehicles in the rental market?

The place of electric vehicles in the rental market: EV fleet, profitability, range, infrastructure, software and customer adoption.

Long touted as a major turning point and the future of the automotive industry, electric vehicles are gradually finding their place in the rental market. This shift is largely driven by decreasing manufacturing costs, improved power and range, government incentives such as eco-friendly purchase bonuses and trade-in programs, and major automakers’ heavy investment in promoting these models. Additionally, rising fuel taxes and growing environmental awareness are key factors fueling the expansion of a sector that is attracting more and more interest.

How is the electric car rental market evolving?

The electric car rental market is undergoing a major transformation. The electric vehicle sector is experiencing impressive growth, particularly in Asia—especially in China, where manufacturers like BYD and SAIC Motor are rapidly gaining ground. However, this momentum is not uniform across all regions. While electric vehicles are attracting a growing number of drivers, adoption remains slower in Europe due to insufficient charging infrastructure and high purchase costs.

Key figures in the electric vehicle market:

• Global sales of fully electric vehicles reached 9.5 million in 2023, an increase of 2.3 million compared to 2022.
• Tesla remains the market leader with a 19% market share in 2023, but its dominance has been gradually declining since 2020.
• Chinese automaker BYD is making strong gains, holding a 16.5% market share in 2023 and is expected to surpass Tesla in sales volume soon.
• China continues to strengthen its position, with SAIC Motor ranking among the top three (8% market share), while Geely-Volvo and GAC Motor are also in the global top six.
• The electric car rental market was valued at $9.13 billion in 2021 and is projected to reach $20.42 billion by 2027.

Although the global electric vehicle market is expanding, integrating EVs into the rental sector remains complex. High maintenance costs, significant vehicle depreciation, and sluggish demand—largely due to insufficient charging infrastructure—are slowing adoption among rental companies. Despite growing interest, as seen with the success of social leasing programs in France, rental professionals still face many challenges before electric vehicles become a truly profitable and viable large-scale alternative.

However, some companies, such as Yuccaloc, Clicar, and Ecolorent (for commercial vehicles), are fully embracing electric mobility, aligning with evolving consumer and business habits. This transition is supported by the myrentcar vehicle rental management solution, which helps rental companies streamline operations and adapt to market changes. These developments highlight the growing role of car sharing and alternative mobility solutions as viable alternatives to individual car ownership. In fact, the average cost of owning a personal vehicle is estimated at €6,000 per year, covering maintenance, insurance, fuel, and depreciation. In this context, electric rentals present an ideal solution, addressing both environmental and economic concerns while meeting evolving customer needs.

How to develop electric car rentals?

To develop electric car rentals, companies must expand their electric car rental offerings. This expansion aligns with the implementation of regulations that encourages businesses to prioritize alternative transportation solutions for both professional travel and commuting. As electric vehicles gain traction in the rental industry—supporting the broader market shift and evolving consumer habits—their growth is expected to accelerate. But how can rental companies develop an electric vehicle rental service without breaking the bank? Fortunately, hitech‘s myrentcar rental management software makes it easier to transition fleets to electric mobility.

Myrentcar helps rental companies navigate the shift to electric mobility by optimizing vehicle management and addressing the unique challenges of this market. With detailed tracking of maintenance and operational costs, myrentcar enables better profitability control, helping mitigate the impact of high maintenance expenses and rapid depreciation. Its smart scheduling system optimizes vehicle rotation by factoring in battery range and charging times, minimizing unnecessary downtime. Additionally, integration with telematics solutions allows real-time monitoring of battery levels and charging status. Discover all the features of myrentcar on our car rental blog and explore how it can support your electric vehicle rental business.