Analysis of the carsharing market in India
The relevance of research
Since 2016, the Indian carsharing market has experienced explosive growth. In the period from 2013 to 2017, there was an active shift in priorities in major cities of India from the use of taxi services and personal transport in favor of carsharing. As part of the state program to improve the transport situation in large cities and reduce the number of cars on the roads, it is planned to expand paid parking areas for ordinary cars, which will inevitably lead to further intensification of demand for car sharing services.
Purpose of the study
Analysis of the state of the car sharing market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the car sharing market.
Content
Part 1. Overview of the Indian car sharing market
1.1. Definition and characteristics of the car sharing market
1.2. Volume dynamics of the Indian carsharing market, 2013-2017
1.3. Market structure by type of service provided in India
1.4. Structure of the car sharing market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive analysis in the car sharing market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Car sharing consumption analysis
3.1. Estimation of car sharing consumption per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the car sharing market until 2022
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian car sharing market
1.1. Definition and characteristics of the car sharing market
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Car sharing took its modern form with the development of smartphones, which made it possible to replace physical keys and smart cards with the functions of a specialized mobile application.
As of 2018, most companies provide their services on a ""free-floating"" basis, when cars are freely placed around the city without using stations. To use car sharing services, the user needs to select the nearest free car on the city map through the mobile application and book it remotely.
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In India, the carsharing service appeared relatively recently: the first project (“ХХХХХ”) started in ... . Until that time, only the traditional daily car rental was offered in the country.
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Since 2016, the Indian car sharing market has been experiencing ... . The number of new members has increased ... . In March 2018, it bypassed all European cities in terms of the number of carsharing cars.
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According to ... , the need for car sharing in major cities of India is steadily growing, and in the period 2019-2022. The market will continue its intensive growth trend and expand the geography of service provision.
According to GidMarket analysts, the global car sharing market will grow by ...% annually, and the Indian market will grow even more rapidly.
1.2. Volume dynamics of the Indian carsharing market, 2013-2017
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Indian car sharing is a very young market that has been developing since the end of 2012. The launch of the service became possible when the requirement to carry a power of attorney to drive a car was canceled.
The first two years, as can be seen from diagram 2, were characterized by ... , despite the almost complete absence of competition in this period. This is due to the lack of special reasons for development, which later were paid parking and restrictions on entering the city center, while providing preferences for taxis and other forms of public transport.
Diagram 2. Dynamics of the volume of the car sharing market in India, 2013 - 2018, million Rs.
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As of the end of 2017, the car sharing market was estimated at ... billion Rs., the statistics of changes over five years (2013-2017) show a multiple increase, which characterizes the explosive growth in this industry. According to statistics, over the period under review, operating companies have invested in the industry more than ... billion Rs.
2017 and 2018 are characterized by active entry of new players into the studied market: the number of main participants increased from ... to ... (as of October 2018), as well as the beginning of expanding the geographical coverage of the service.
...
1.3. Market structure by type of service provided in India
According to the level of cars offered for short-term rental, carsharing can be divided into three segments: ...
Chart 3. Car sharing market structure by car level, October 2018, %
The first category includes inexpensive cars of the budget class. In India, this segment is mainly represented by cars Lada Granta, Hyudai Solaris and KIA Rio in the minimum trim levels. The rental price in this segment starts from ... rupees per minute of travel.
...
1.4. Structure of the car sharing market by Union Territories
The Indian car sharing market is dependent on population density and transport infrastructure, which is why it is characterized by a clear geographical localization with a maximum concentration (see Diagram 6). In small towns, the service is not in demand and promising.
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1.5. Assessment of current trends and development prospects of the studied market
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The relatively low level of competition that remains at the current stage makes it possible to predict development in the coming years primarily due to ... . In the future, a qualitative growth of the industry is planned: ... .
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Analysts directly link the further growth of the short-term rental market with a change in the format of people's lives in big cities: ... . According to expert estimates, if the mileage is less than 50 km per day, it will be more profitable for residents to use carsharing, rather than owning personal vehicles.
The development of the carsharing market is closely connected with the development of information technology. ...
In the future, with the growth of transport infrastructure and its level of automation, a gradual transition to unmanned vehicles will be carried out. ...
Thus, the key trends in the carsharing market are as follows:
...
It should also be noted that carsharing is a promising business not only for operating companies, but also for car dealers, for whom the rapid development of this area allows them to support corporate sales.
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1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand for short-term car rental services in India.
Economic forces
Social factors
Technological factors
Political factors
Concluding the assessment of the impact factors on the Indian car sharing market, we will summarize the key ones in the framework of the STEP analysis.
Table 2. STEP analysis of factors affecting the car sharing market
1.7. Analysis of sectoral indicators of financial and economic activity
... for the period from 2013 to 2017. activities in the field of car sharing in the industry as a whole were unprofitable. At the end of 2017, the amount of loss amounted to ... million Rs. Of the most significant operators on the market, only ... and ... ended the year with insignificant profits. The increase in losses is primarily due to ... .
This situation is typical for a young, rapidly growing market that requires large amounts of investments at the initial stage. According to experts, companies can reach self-sufficiency not earlier than ... years after entering the segment.
The geographical distribution by districts corresponds to the share of participation of market operators.
Table 3. Profit (loss) from the sale of carsharing services in the Union Territories of India, 2013-2017, thousand Rs.
At the end of 2017, the gross margin in the field of carsharing had ... indicators, which is associated with the reflection by operators in the reporting of the unprofitability of their activities. However, it should be noted that during the analyzed period there is a clear upward trend in this indicator.
...
In general, the analysis of sectoral financial ratios allows us to state ... .
Part 2. Competitive analysis in the car sharing market in India
2.1. Major players in the market
The car sharing market in India is in a phase of active growth. Period 2017-2018 characterized by a sharp increase in the number of participants in this segment. ...
...
Many companies that entered the market in 2017-2018 are still in the development and formation stage, which is why their share of participation is still very low. However, in the future, due to the rapid development of the industry, their importance may increase. These operators include: ...
2.2. Market shares of the largest competitors
...
Also, 2018 is characterized by a massive opening in the analyzed segment of new companies with a small car park (... units). As of October, these companies occupy very insignificant market shares: up to ...% of the total volume.
Chart 24 shows the percentage ratio between the main participants in the market as of October 2018.
Diagram 24. Shares of the largest competitors in the carsharing market in 2018
2.3. Profiles of major players
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The total revenue of the largest car sharing market operators is calculated on the basis of official reporting data. The study of the dynamics of total revenue is indicative from the point of view of the analysis of growth trends.
The data presented in Diagram 17 allows us to state that the market is going through a phase of explosive growth. In 2017 alone, the total revenue of the largest market operators increased by more than ... times.
Since the market is far from being saturated, according to GidMarket experts, the trend of intensive growth will continue in the coming years.
...
Part 3. Car sharing consumption analysis
3.1. Estimation of car sharing consumption per capita
Based on the specifics of the studied market, the car sharing service is in demand only in large cities. In regions with low population density, the market has no potential for development. In connection with the above, the volume of car sharing consumption per capita is calculated by GidMarket specialists, based on the total number of large cities in India (with a population of more than 500 thousand people).
In 2013 and 2014, per capita consumption was approaching ... due to the emergence of the Indian market. Since 2015, spending statistics have shown steady growth. At the end of 2017, the average amount spent by a resident of a large city on carsharing was ... rupees. According to GidMarket forecasts, in 2018 this amount will increase to ... rupees. Such low figures of per capita consumption reflect ... the saturation of the market and speak of ... the potential for its development. The growth rate of the indicator indicates the intensive expansion of the Indian market.
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3.2. Market Saturation and Estimated Market Potential in India
The development of transport infrastructure, the widespread introduction of innovative technologies, support for services at the state level and the expected increase in the standard of living of Indians at the end of 2018 are ... .
The main target audience of this service: ... . An analysis of the needs of this audience allows us to conclude that the car sharing market in India ... from the point of saturation, and the potential demand for services ... offers.
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Thus, at the moment the saturation of the market is ... . From the point of view of the life cycle stage, the Indian car sharing market is in its infancy and intensive growth.
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3.3. Description of consumer preferences
As of 2018, the car sharing audience cannot be called wide. According to a survey conducted by ..., only ...% of respondents used short-term rental services. At the same time, out of the total number of respondents in the metropolitan regions, only ...% knew about the existence of the car sharing service. According to the majority of users (...%), carsharing is an effective alternative to taxis.
According to statistics, at present, users still rarely use car sharing services: only ...% of the total number of respondents use the service on a regular basis.
This ratio is associated with the underdevelopment of the analyzed market. According to GidMarket experts, in the near future it is planned to change user preferences towards ... .
According to the study, currently the most active users of short-term leases are specialists and middle managers, mainly office workers.
Diagram 28. Segmentation of users by type of activity, 2018, %
3.4. Price analysis
The consumer price index for car sharing services was calculated by GidMarket based on official statistics for the period from 2013 to September 2018.
During the specified period, the average annual price index for carsharing amounted to ...%, the largest increase in prices for short-term rental services occurred in 2016, in which it amounted to ...%, which was partly due to the growing popularity of the service during this period against the backdrop of low competition and no need to implement a loyal pricing policy. The smallest increase (...%) falls on 2017.
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According to a preliminary expert assessment, by the end of 2018, the price growth index will be ...%.
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The pricing policy in carsharing consists of several factors. ...
For economy class cars (for example, LADA Granta) the rental price is ... rupees per minute, and for premium category cars (for example, Audi Q3 crossover) it can rise to ... rupees per minute.
It should be noted that most car sharing operators provide their customers with the opportunity to leave a rented car for free at night. As a rule, this time interval is from midnight to 6 am.
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Part 4. Evaluation of factors of investment attractiveness of the market
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Part 5. Forecast for the development of the car sharing market until 2022
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Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
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Diagrams
Diagram 1. Global growth in the number of car sharing users in 2010-2018. and forecast until 2022, million people
Diagram 2. Dynamics of car sharing market volume in India, 2013 – 2018, million Rs.
Diagram 3. Dynamics of the fleet of carsharing services, 2013 – 2018
Diagram 4. Car sharing market structure by car level, October 2018, %
Diagram 5. Structure of the car sharing market by types of trips, as of October 2018, %
Diagram 6. Structure of provision of car sharing services in India by Union Territories in 2018, %
Diagram 7. Number of trips per year on cars of car sharing services, 2013-2018, thousand
Diagram 8. Dynamics of changes in the transport mobility of the population of India, 2011-2017
Diagram 9. Dynamics of the volume of insurance premiums for CASCO, 2013-2018, billion Rs.
Diagram 10. Price growth dynamics for AI-95 gasoline, 2013-2018, Rs. per liter
Diagram 11. Dynamics of India's GDP, in 2011-2017, Q2 2018 % to the previous year
Diagram 12. The dynamics of the US dollar against the rupee, Jan. 2014 - October 2018, Rs. for 1 US dollar
Diagram 13. Population change in India, 2010-2018
Diagram 14. Number of car sharing users, 2013-2018, thousand people
Diagram 15. Dynamics of real incomes of the population of India, 2011 - 9 months. 2018
Diagram 16. The ratio of car sharing users to outdoor advertising on cars, 2018, %
Diagram 17. The ratio of the population to unmanned vehicles, 2018, %
Diagram 18. Internet penetration dynamics in India, 2008-2018, %
Diagram 19. Growth dynamics of Internet use on mobile devices, 2013-2018
Diagram 20. Profitability of profit before tax (profit of the reporting period) in the field of carsharing in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 21. Current liquidity (total coverage) in carsharing for 2013-2017, times
Diagram 22. Business activity (average period of receivables turnover) in the field of carsharing, for 2013-2017, days
Diagram 23. Financial stability (security of own working capital) in the field of carsharing, in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 24. Shares of the largest competitors in the carsharing market in 2018
Diagram 25. Dynamics of the total revenue of the largest car sharing market operators (TOP-5) in India, 2013-2017
Diagram 26. Consumption of carsharing per capita, 2013-2018, Rs./person
Diagram 27. Frequency of using carsharing, 2018, %
Diagram 28. User segmentation by type of activity, 2018, %
Diagram 29. User segmentation by age, 2018, %
Diagram 30. Ownership of a personal car by users, 2018, %
Diagram 31. Breakdown of carsharing users by gender, 2018, %
Diagram 32. Forecast of the volume of the car sharing market in 2018 - 2022, million Rs.
Tables
Table 1. Population density in the largest regions of India, 2018
Table 2. STEP analysis of factors affecting the car sharing market
Table 3. Profit (loss) from the sale of carsharing services in the Union Territories of India, 2013-2017, thousand Rs.
Table 4. Gross margin of the carsharing industry in comparison with all sectors of the Indian economy, 2013-2017, %
Table 5. Absolute liquidity in carsharing compared to all sectors of the Indian economy, 2013-2017, times
Table 6. The main companies participating in the car sharing market in 2018
Table 7. Basic information about the company ""ХХХХХ""
Table 8. Basic information about the company ""ХХХХХ""
Table 9. Basic information about the company ""ХХХХХ""
Table 10. Basic information about the company ""ХХХХХ""
Table 11. Basic information about the company ""ХХХХХ""
Table 12. Indices of price changes for carsharing in India in 2013-2018, %
Table 13. Average car sharing prices across the Union Territories as of October 2018
Table 14. Assessment of factors of investment attractiveness of the carsharing market
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