Car Rental Sector Approaches Electric Vehicles with Caution

While the short-term rental market grew in 2025, the operational fleet segment continued to shrink. The Turkish car rental sector experienced a clear divergence between the short-term and long-term segments in 2025. While demand for individual short-term rentals increased during the summer due to tourism, high financing costs and total cost of ownership (TCO) pressures led to a contraction in operational fleet rentals.

Okan Erdem, General Manager of Aşin Otomobil, a representative of the sector, said, "Double-digit demand potential is maintained in the short term; renewed growth in the fleet segment depends on financing conditions. We are taking a cautious approach for 2026. Despite the increase in sales of electric vehicles, this transformation is progressing more slowly in the rental sector. Uncertainty regarding second-hand values is limiting the pace of transition."

A Divergent Picture in 2025: Short-Term Grew, Fleet Shrunk

According to Aşin Otomobil's data, short-term rentals grew by around 20% in the first three quarters of 2025, while operational fleet rentals continued to shrink.

Erdem said, "We observed a 6.5% contraction in the fleet park in the first half of the year. We see that small and medium-sized companies in particular are not renewing their lease contracts or are turning to more economical vehicles."

While the strong tourism season supported the short-term segment, interest rates and restrictions on access to financing continued to affect long-term rentals.

Consumer Behavior is Changing

Car rental preferences have also changed in recent years. Fast and contactless delivery processes, mobile applications, transparent pricing policies, and short contract processes have become prominent factors for users.

Erdem stated, “Especially during holiday periods, demand for early reservations has increased in response to currency fluctuations. Consumers now value experience as much as price.”

It was noted that large rental companies operating on a global scale have begun to shift toward electric and hybrid vehicles in their operational fleets in line with sustainability policies.

A Period of Caution in the Transition to Electric Vehicles

Sharing his expectations for 2026, Okan Erdem stated that insurance and financing costs could increase rental prices, but that competitive pricing policies could strike a balance in favor of consumers.

Erdem said, “Electric vehicles are rapidly becoming widespread on the sales side, but the leasing sector is more conservative by nature. Although maintenance costs are low, uncertainty regarding second-hand value is making the transition to electric vehicles gradual. Current indicators support this cautious transition. Hybrid models will be an important interim solution during this period.”