Millennials, Gen Z driving demand for luxury car rentals in India

India’s luxury car rental market is seeing a significant increase in demand, particularly in major cities such as Mumbai, Bangalore, and Delhi. Executive travellers, especially from the tech sector, as well as younger demographics like millennials and Gen Z, are increasingly opting for high-end vehicles for special occasions and domestic travel. Luxorides, a luxury car rental company, reported a 40% rise in bookings on popular routes including Delhi-Rishikesh, Delhi-Vrindavan, Delhi-Jim Corbett National Park, Chandigarh-Manali, and Chandigarh-Ladakh. This growth is also being driven by foreign and NRI travelers seeking ultra-luxury travel experiences. Mumbai and Delhi have shown the highest growth in demand, at 35% and 40% respectively, with Bangalore experiencing a 40% rise, Pune 10%, and Udaipur 14%. Jamnagar also saw a large surge in demand recently due to pre-wedding events hosted by the Ambani family, according to Luxorides data.

The demand for luxury vehicle bookings fluctuates with the season. During the wedding season, bookings can surge into the lakhs, while at other times, they may drop to below 10,000. Corporate bookings are also high during busy seasons. Luxorides typically receives 100-150 bookings per city per month, with Delhi seeing about 170-200 bookings, Mumbai 150-170, and Bangalore 110-125, while other cities average between 40 and 70 bookings monthly.

Aaditya Mishra, co-founder and director of Luxorides, noted that the luxury travel market in India is expanding, particularly in top-tier cities, with a 20% surge in demand across India. This trend is being driven by young professionals and a growing domestic travel market. In response, Luxorides is enhancing its technological infrastructure to create a more interactive, user-friendly, and scalable system. Harman Preet Singh, marketing director at Pune Travellers & Travel Ease, observed a rise in luxury car bookings by Gen Z for events such as graduations and birthday parties. He also mentioned that elections can boost business, as news channels, corporations, and others require increased mobility during election seasons, which helps to mitigate the typical off-season slow period starting in March.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.