Market Size of Malaysia Car Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 549.28 Million |
| Market Size (2029) | USD 825.93 Million |
| CAGR (2024 - 2029) | 8.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Malaysia Car Rental Market Analysis
The Malaysia Car Rental Market size is estimated at USD 549.28 million in 2024, and is expected to reach USD 825.93 million by 2029, growing at a CAGR of 8.5% during the forecast period (2024-2029).
The car rental market in Malaysia has great potential for growth due to the increasing pollution, rising car prices, and cost-effectiveness. Interestingly, Malaysia has one of the smallest auto leasing and car rental fleet sizes in Asia-Pacific. The sector benefits consumers, rental companies, and manufacturers alike and is rapidly becoming a significant vertical in the transportation industry.
As people's mindsets shift, they are becoming more open to traveling light. Renting a car instead of owning one, especially for travel, is becoming a more comfortable and popular option. This change in society has resulted in a high demand for rental cars in the market.
The car rental industry in Malaysia is currently encountering a series of difficulties. Among these challenges are the economic downturn, unfavorable perceptions among both individuals and companies toward car rentals, a decrease in the oil and gas industry, low automobile financing rates, the presence of illegal operators, and a decrease in used car prices.
The car rental industry in Malaysia is facing fierce competition from the high demand for car allowances offered by corporates. Car allowances provide various benefits to companies and employees, making it challenging for rental companies to compete. In order to overcome this challenge, rental companies are changing their marketing and business development strategies to attract more customers to opt for car rentals.
