Demand for self-drive rental cars spikes in Coimbatore

Coimbatore: Self-drive car rentals in the city have seen a surge in popularity over the past two years. For those who do not own a car, it offers a flexible and economical alternative for commuting and exploring tourist destinations without being tied to public transport schedules or dependent on a driver.
G Lokesh, a resident of Saibaba Colony, recently opted for a self-drive rental car for a family trip. He said choosing a self-drive rental car was more cost-effective than hiring a cab for a full day of travel. “Had I hired a cab, it would have cost around Rs5,000, including travel and waiting time. Instead, I spent Rs3,600, which covered fuel and rental for around 290km of travel in an entry-level car.”
You get to enjoy personal space, especially on family trips, and travel at your own pace, he said. “From hatchbacks to SUVs, we could choose vehicles that suit our needs or mood. Plus, we avoid the costs of ownership, like insurance, maintenance or EMIs, while paying only for what we use.”
An official with Comfort Drive Pvt. Ltd, a car rental service provider, said public awareness on self-drive car rentals has grown significantly. “We have seen a 25% increase in customers over the past year. During summer, demand is high. Earlier, we used to serve around 160 customers from April to July. This number gone up to 200. In the off-season, we average about 100 customers per month.”

According to him, local customers usually prefer budget-friendly cars. “However, we receive many bookings from people coming from other states who rent high-end models to visit tourist spots such as Ooty, Kodaikanal and destinations in Kerala.”
Another official with a permitted operator said, “Demand peaks during weekends, while weekdays see relatively fewer bookings.”
There are around 150 self-drive rental car operators in the city today. “Just five years ago, there were barely 10 rental car operators. Over the past two to three years, the number has multiplied because of the rising demand,” the official said.
Apart from the registered operators, he said many individual car owners in the city and nearby areas were renting out their private vehicles by tying up with rental cab operators without proper permits to earn extra income.
A transport department official said only two firms in the city were officially permitted to operate self-drive car rentals. He cautioned the car owners against renting out their vehicles without proper permits, while advising people against opting for unpermitted cars.
“It is difficult to monitor whether private cars on the road are being driven by their owners or rented out. When a private car is driven by someone unfamiliar to the owner, it may not be covered by insurance in the event of an accident. Strict enforcement of insurance regulations could help curb such violations significantly,” he said.
To rent out a vehicle legally, he said, the operator must obtain a permit from the state transport authority through the concerned regional transport office. Permitted operators are required to use black number plates with yellow lettering for self-drive rental vehicles, he said.
“Commercial vehicles must undergo an annual fitness check, pay permit fees and renew their permits every five years. Insurance premiums are also higher for rental cars. In contrast, private vehicles do not require a fitness certificate for the first 15 years, and their insurance costs are lower. Because of this, some people rent out their private cars illegally at rates cheaper than those offered by registered operators,” the official said.