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Car Rental Market to Make $176.2b by 2025

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By Dipo Olowookere

Future Market Insights (FMI) has announced the release of its report titled ‘Car Rental Market: Global Industry Analysis and Opportunity Assessment 2015-2025.’

According to the report, the global car rental market, valued at $87.8 billion in 2014, is anticipated to reach $176.2 billion by 2025, expanding at a CAGR of 6.6 percent between 2015 and 2025.

The global car rental market is driven by rising global tourism industry, surge in public awareness about car rental services, easy booking via online services, introduction of new business concepts, increasing number of Internet users and rise in international tourist arrivals. Apart from this, growing GDP rates and increasing income levels in the developing regions are also positively influencing growth of the car rental market globally.

Increasing infrastructural developments, growing air travel, rise in demand for recreational activities and increasing urban population have widened the scope for car rental service providers. Conversely, stringent emission standards, low cost public transportation, and volatility in crude oil prices are some of the minor restraints in the global car rental market. Additionally, increasing mobile and Internet usage is also expected to drive growth of the global car rental market in the coming years. Growing investments by the industry players and increasing online presence of the car rental service providers is expected to further drive growth of global car rental market.

Rising technological developments are expected to offer favourable growth opportunities in the near future. Rapid urbanisation is leading to a rise in the mobility on-demand services, which include car sharing, short-term car rental services, etc., which are providing favourable prospects for growth of the car rental market.

North America dominated the global car rental market in 2014, in terms of revenue, accounting for 48.4 percent share of the overall market. However, APEJ (Asia Pacific Excluding Japan) is foreseen to expand at a relatively high CAGR of 10.2 percent during the forecast period. North America is expected to remain the most dominant global car rental market throughout the forecast period.

The major players in the market are focusing on expanding their global footprints through various mergers and acquisitions.

Rising consolidation in the car rental industry has facilitated market leaders, such as Enterprise Holdings Inc., to expand their respective businesses in various geographies, thereby increasing their market share. The U.S. is witnessing major investments by market players, along with increasing popularity of car sharing services.

By end use, the on-airport segment dominated the global car rental market in 2014 in terms of revenue, and is foreseen to expand at a CAGR of 8.2 percent during the forecast period. The on-airport car rental segment is expected to remain the most dominant segment in the global car rental market throughout the forecast period

By customer type, the leisure segment is foreseen to expand at a high CAGR of 8.6 percent during the forecast period. The segment is expected to dominate the global car rental market throughout the forecast period.

On the basis of booking type, the offline access dominated the global car rental market in 2014 in terms of revenue, accounting for 48.4 pecent share of the overall market in 2014. The market is expected to lose its market share to the mobile application segment, which is projected to expand at a CAGR 9.9 percent during the forecast period.

On the basis of sector, the unorganised segment dominated the global car rental market in 2014 in terms of revenue, accounting for 56.9 percent share of the overall market. However, the organised sector segment is foreseen to expand at a relatively high CAGR of 7.3 percent.

Competitive Landscape

Key market players covered in the reportinclude Enterprise Holdings Inc., The Hertz Corporation, Avis Budget Group, Inc., Europcar Group S.A., Carzonrent India Pvt Ltd., Sixt SE, Al Futtaim Group, Localiza- Rent a Car SA, Eco Rent a Car and GlobalCARS. The car rental market is consolidated in some regions such as the U.S. and Europe, with the top two players bagging over 50 percent shares of the total market. Most players in the market are engaged in various activities, such as mergers and acquisitions, increasing investments in technological developments, geographical expansion and brand building via strong marketing strategies, in order to sustain their position in the competitive market.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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NRS Denies Introduction of New Vehicle Tax from July 1

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By Modupe Gbadeyanka

The Nigeria Revenue Service (NRS) refuted reports making the rounds on social media that the federal government plans to introduce a new tax on vehicles from July 1, 2026.

Mr Dare Adekambi, who serves as the Special Adviser to the NRS Chairman, Mr Zach Adedeji, and spokesperson for the organisation, said in a statement that the government was not planning to introduce the vehicle tax as claimed.

He described a viral infographic purporting the policy as false and misleading, urging members of the public to disregard it.

Mr Adekambi advised citizens to only rely on information from the NRS, urging them to follow the company its official handles on all social media platforms and its website for accurate information about tax and its activities.

In the infographic, motorists were directed to pay an unspecified vehicle tax rate online or at approved banks and agencies. The website listed as NRS’s was the old one, http://www.firs.gov.ng and not the new http://www.nrs.gov.ng created after it was rebranded.

“The NRS wishes to state categorically that the information did not emanate from the service or any government agency.

“Citizens are, therefore, advised to disregard the fabricated messages designed to mislead the public and instead rely on official government channels for information on government policies,” Mr Adekambi said in the statement.

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Court Restrains Police, FRSC from Imposing Car Insurance Fines Without Court Order

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third-party insurance

By Adedapo Adesanya

The Federal High Court in Abuja has restrained the Nigeria Police Force and the Federal Road Safety Corps (FRSC) from imposing fines on motorists for third-party motor vehicle insurance violations without a court order.

The ruling followed a suit marked FHC/ABJ/CS/291/2025 filed by activist-lawyer, Mr Deji Adeyanju, against the Inspector-General of Police, the Attorney-General of the Federation and the FRSC.

Delivering judgment on Friday, Justice Hauwa Yilwa held that while both the police and the FRSC have the power to enforce compliance with third-party motor insurance, they lack the legal authority to impose fines on alleged offenders.

The suit was initiated through an originating summons, brought pursuant to Section 17 of the Motor Vehicles (Third Party Insurance) Act, 1950, Sections 68(3) and (4) of the Insurance Act, 2003, as well as provisions of the Federal Road Safety Commission (Establishment) Act, 2007.

Mr Adeyanju had asked the court to determine whether the police could enforce third-party insurance, impose fines without judicial backing, and whether such enforcement during routine stop-and-search operations violated constitutional rights.

He also sought a declaration on whether the power to enforce third-party motor insurance lies exclusively with the FRSC.

In addition to the declaratory relief, the applicant requested orders of perpetual injunction restraining the police from enforcing third-party insurance and from imposing fines without judicial backing.

He further urged the court to hold the Attorney-General of the Federation accountable for providing legal guidance on the scope of police powers under the relevant statutes.

However, in its judgment, the court drew a distinction between enforcement and sanctioning powers.

Counsel to the applicant, Mr Marvin Omorogbe, said the court upheld the authority of both the police and the FRSC to ensure compliance with motor vehicle insurance laws, but firmly ruled against the imposition of fines by either agency.

According to him, the court held that “the police and the road safety may enforce” compliance but “outrightly lack the powers to impose fines on third parties or vehicle owners” in the course of such enforcement.

“The court went further to restrain the IGP, the Police Force and all their officers, including the FRSC, from imposing fines on motor vehicle users or Nigerian citizens,” Mr Omorogbe said.

Reacting to the judgment, Mr Adeyanju expressed satisfaction, noting that the central objective of the suit had been achieved.

“The sole reason why we came to court is that we wanted the court to make a positive declaration that the police and the road safety do not have the right to impose fines on any Nigerian over motor vehicle insurance. And we have succeeded,” he said.

He argued that the ruling would curb what he described as a pattern of extortion by enforcement agencies and restore confidence among motorists.

Mr Adeyanju added that although the court declined to grant all the reliefs sought—particularly the request to strip the police entirely of enforcement powers—it nonetheless made a significant pronouncement on the limits of those powers.

He also urged Nigerians to take advantage of the judgment to assert their rights and seek legal remedies where necessary.

On the other hand, counsel to the defendants, Mr Victor Okoye, said the judgment was only partly favourable to the police and signalled plans to challenge it at the Court of Appeal.

Mr Okoye disclosed that the defence had raised a preliminary objection questioning the jurisdiction of the court to entertain the suit, arguing that the originating summons was incompetent and unsuitable for resolving contentious issues.

He relied on appellate authorities to stress that jurisdiction is fundamental to adjudication and must be determined before any substantive issues.

Despite this, he noted, the court proceeded to deliver judgment.

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Pamtech Issues Public Disclaimer on Popular Auto Influencer Juliet Ibekwe

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Juliet Ibekwe Somiari Lucky

By Modupe Gbadeyanka

A public disclaimer has been issued on two former representatives of Pamtech Group, Mr Somiari Lucky and Ms Juliet Ibekwe, who is a popular auto influencer.

In the notice signed by the chief executive of Pamtech, Mr Chidomere Ndubuisi, on Tuesday, members of the public were informed that the duo no longer work with the organisation.

Mr Ndubuisi, who did not disclose why he disengaged the duo, however, emphasised that Mr Lucky and Ms Ibekwe are “not authorised to act on behalf of, represent, negotiate, or enter into any business dealings in the name of Pamtech Media Ltd or Pamtech Group.”

Ms Ibekwe rose to fame by creating content on how to make vehicles work efficiently. She became a notable auto content creator in Nigeria and garnered more fans for her car care tips.

In the disclaimer today, Pamtech warned “the general public, our valued clients, partners, and stakeholders” that doing business with Ms Ibekwe and Mr Lucky is “at their own discretion and risk, and such engagements do not involve Pamtech Group in any capacity.”

“Any business transactions, agreements, or engagements entered into with the above-mentioned individuals are strictly personal to them; Pamtech Group shall not be held liable or responsible for any commitments, representations, or obligations made by them after their exit from the company,” another part of the notice stressed.

The Owerri, Imo State-based firm further noted that, “Any use of the Pamtech name, brand, platform, or reputation by them without written authorisation is unauthorised and not recognised by the company.”

The company urged its clients, partners, and members of the public to verify all engagements directly with Pamtech Group official channels, and also ensure that all payments and communications are made only through verified company accounts and representatives.”

Pamtech expressed its commitment to delivering excellence, integrity, and professionalism across all its services in media, automobile, and business solutions.

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