‘Huge potential of self-drive car mkt remains untapped in India’

IndusGo, a leading technologically advanced self-drive car rental company and a subsidiary of Indus Motors, after building a strong presence in Kerala has set its eyes for strengthening its network in South Indian cities like Hyderabad, Bengaluru and Chennai. Realising the huge potential for further growth, IndusGo, under the leadership of its chief architect Afdhel AW, believes in a digital-first and data-driven strategy backed by cutting-edge technology.

Afdhel founded the startup in 2018 to swiftly become one of India's top self-drive car rental companies known for its advanced technology. He said the firm was started with Rs 20 crore and subsequently secured an investment of Rs 100 crore to establish a competitive fleet of 1,000 cars by the end of 2023. With a variety of vehicle options, including hatchbacks, sedans, SUVs and luxury cars, we cater to diverse customer needs, he said adding their flexible rental options, ranging from daily to monthly, ensures that they accommodate customers with varying requirements. In an exclusive interview with Bizz Buzz, he said that self-drive car rentals have not increased in India to the same extent as in the United States, where the preference for self-drive car rentals is overwhelmingly more than for chauffeured cabs. He attributes this to certain apprehensions that come with self-drive car rentals. He said that in India, the promoters of self-drive car rental services need to be more transparent, more accessible, and provide more flexibility to customers in scheduling and revising their services as per their requirements

How do you use technology to become a one-stop solution to meet the expectations of the customers?

With our self-drive model and our advanced app, customers have the freedom to book a car at their convenience, whether it would be for a few hours, several days, or even months. Our app serves as a one-stop solution that enables our customers to carry out every function including cancellations, rescheduling, feedback and queries. This versatile model also caters to various needs, from personal travel to professional use, student transportation, and corporate rentals.

Customers can choose their rental duration and preferred car type, making it a cost-effective and practical alternative to both car ownership and hiring a driver. While we are inducting digital solutions in our operations to make the process as efficient as possible, we are also using AI and machine learning for optimal car utilisation and better personalisation.

Do you have a vehicle monitoring system?

Yes. We do. IndusGo has a robust vehicle-monitoring system that provides real-time information about vehicles enabling fleet management, allowing us to provide 24/7 assistance and flexible pricing. This information can also be accessed by customers through the app and website that allows them to get timely updates on their vehicles and the plans they have chosen. IndusGo’s vision is to plan for further investment in the business, including the expansion of its fleet by developing its presence in Tamil Nadu and Telangana.

Earlier this year, we sought Rs 100 crore from our parent company, Indus Motors. We are utilising this investment by further strengthening our operations by mainly increasing the size of our fleet by procuring more vehicles and investing in the deployment of advanced technology.

Currently, we have 720 vehicles, and our goal is to add another 1,000 cars to the fleet by the end of this year. We are also planning to gradually shift our focus toward EVs and not restrict ourselves to vehicles that run on fuel. We firmly believe that the expansion of our overall fleet will facilitate a seamless entry into other South-Indian cities like Bengaluru.

We already have our presence in Tamil Nadu and Telangana. Our operation in Chennai and Hyderabad has made it evident that there is immense scope for us to percolate into other cities in these States. We have about 64 cars in Telangana while we maintain a fleet of 77 in Tamil Nadu. These numbers are going to grow exponentially as we spread our base further in these States. Additionally, we are also planning to launch our services in Bengaluru, Delhi and Mumbai.

How is IndusGo's fleet disrupting the rental car industry in the context of India's push for electric mobility, and contributing to reducing carbon emissions while supporting sustainable transportation?

In line with the urgent need to cut down on carbon emissions and moving towards more sustainable means of transportation, we at IndusGo are gradually shifting our focus towards creating an eco-friendly business model with our recent procurement of 50 Tiago EVs and more such partnerships on the way. We strongly advocate the adoption of clean energy in the automobile industry, as it benefits all stakeholders. In addition to being eco-friendly, EVs also help to reduce maintenance and upkeep costs.

What are the major challenges faced by self-drive car rental companies in India, and how are they addressed?

Firstly, there is a lack of a legal framework, especially for self-drive car rentals, which restricts players from venturing into this industry. There is no definitive structure that binds the industry so that an effective competitive climate can be established. Secondly, lack of resources; automobiles are expensive, and procuring a huge number of cars is not feasible with limited resources. And a VC investment won’t help in these areas as most investors would not be willing to pay for the procurement of assets but would rather pay for marketing and operations.

I also think the reason why self-drive car rentals have not grown in the country as compared to let's say the United States, where the self-drive car rental market is bigger than chauffeured cabs, is because there is a certain apprehension that comes with self-drive car rentals. Companies in the country need to become more transparent, more accessible, and provide flexibility that would assure customers to seek their services.

How do technological advancements and the presence of international car rental companies impact the user experience, efficiency, and competition in the car rental market in India?

With the proliferation of international car rental companies in India, the standard of conducting business has transformed. There is an increased focus on making the business more phygital and employing omni-channel optimisation in the overall operations. Customers are looking for a user-friendly one-stop solution where all aspects of their requirements can be addressed.

From booking to tracking, payments, cancellations, and even queries and complaints need to be found in one place. Further, we are also focusing on making our approach in the market more transparent and customer-oriented while offering the best experiences to our customers through technological intervention. And I think that's the key. Give the customers a seamless, transparent experience by leveraging technology.

How can the government support the development of a robust rental service network in the country?

There is a strong need to integrate self-drive car rentals with a robust legal framework that legitimises the sector and pushes it into mainstream conversations. Clear and definitive regulatory policies should be kept in place that ensures safety standards and insurance requirements are adhered to. Furthermore, the government's invitation to investors for developing infrastructure, with a strong focus on disruptive technologies like electric vehicles will spark innovation and drive the industry forward. By offering tax cuts, subsidies, and other incentives to businesses entering the EV market, the government can foster an environment conducive to growth and sustainability. Creating collaborative platforms for self-drive car rental portals to connect with tourists seeking such services is another exciting step towards enhancing accessibility and tourism experiences. This positive approach will pave the way for a thriving, dynamic, and environmentally conscious automotive landscape, benefiting both the industry and the public alike.