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What will happen to car rental in 2023-2024 in Ukraine?

Over the past decades, car rental has been gaining popularity in Ukraine not only among visiting diplomats and tourists, but also among the local population. This was due to the increasing mobility of large cities, the increasing flow of tourists and the growing interest in modern forms of transport. But the pandemic and the war have made their adjustments and over the past couple of years the situation has changed greatly, including car rentals in Kyiv. In this article we will take a look at the forecast of the car rental market in Ukraine for the years 2023-2024.

Factors influencing the growth of car rental

Car rental in Ukraine has already faced several challenges and factors that can and are already affecting its development in 2023-2024.

Lack of tourism

Military actions and instability in Ukraine have a negative impact on all destinations. Tourism has virtually come to a halt over the past year, except for a small flow of foreign journalists and volunteers, who can take advantage of their usual rental service. Considering that foreign guests and travelers before the war were the main stream of clients, we can say that the majority of the client flow has disappeared.

Economic situation

The state of Ukraine's economy has a direct impact on the demand for car rentals. With economic growth and stability one can expect an increase in the number of tourists and an increase in demand for rental services. However, financial difficulties or economic downturns reduce the purchasing power of the population and reduce the demand for rental cars. In the case of 2023, people are less willing to take cars for travel or just for a comfortable ride in the midst of war.

Competition and new related industries

The development of related forms of transportation, such as carsharing, can significantly affect the overall picture of the rental market and constitute direct competition. For example, the Ukrainian carsharing service Getmancar continues to develop and grow even during wartime due to the convenience and availability of its services. Such competition on the part of carsharing services can lead to the reduction of prices and improvement of conditions for customers. However, if martial law changes and investors start to enter the market, it could revive the rapid growth of rentals and return the market to its pre-war popularity.

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Difficulties in supplying

Against the backdrop of hostilities, some deliveries of components and the cars themselves may be difficult or not at all, delivery times may increase due to queues at customs and additional inspections, and this in turn will make it difficult to provide reliable service. However, 2023 did not show much of an effect of this factor on the overall rental picture.

All these factors may have a negative impact on the development of classic rentals in Ukraine, but at the same time, the Ukrainian business has a good ability to adapt and deal with crises. So during the war there were new requests for travel.

New inquiries for car rental

More and more often companies are allowing their cars to go abroad, because the demand for evacuation to safe places is growing. For example, at the beginning of the war the service AutoArenta provided its cars for the evacuation from Kyiv and Dnipro to the Western regions, and the same carsharing service Getmancar gave a car even for a trip to Poland, so we can assume that next year this service will occur more often, and the demand will only grow.

To summarize, we can talk about the prospects of the car rental market in Ukraine, but taking into account the circumstances, the growth will be much slower and will directly depend on key factors in the country. It is possible to say that in 2023-2024 classic car rental market will face challenges and prospects. Rental companies will strive to strengthen their positions by developing innovative services and improving the quality of service. At the same time, factors such as military operations, lack of tourist business and global trends in the car industry will influence the demand and structure of car rental market in Ukraine this year and next year. The key success factor for the companies in this market will be adaptation to the changing conditions and continuous development of both the fleet and service.

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