Turkey Car Rental & Mobility Subscriptions Market

Turkey Car Rental & Mobility Subscriptions Market valued at USD 1.1 Bn, driven by urbanization, tourism, and EV incentives, with fleet over 240,000 vehicles and growth in digital services.

The Turkey Car Rental & Mobility Subscriptions Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by increasing demand for flexible transportation solutions, rapid urbanization, and a sustained rise in both domestic and international tourism. The market has seen a significant uptick in short-term and long-term rental services, as consumers seek convenience, cost-effectiveness, and digital booking options in their mobility choices. The active rental fleet has grown to over 240,000 vehicles, reflecting strong momentum in fleet investment and service diversification.

Istanbul, Ankara, and Izmir remain the dominant cities in the Turkey Car Rental & Mobility Subscriptions Market. Istanbul, as the largest city and a major tourist hub, attracts a high volume of both domestic and international travelers. Ankara, the capital, has robust demand from corporate clients, while Izmir benefits from its coastal tourism, driving rental needs in the region. Seasonal surges, especially during spring and summer, further amplify demand in these metropolitan areas.

In 2023, the Turkish government advanced regulations to promote electric vehicle usage in the car rental sector. The “Regulation on Incentives for Electric Vehicle Fleet Integration, 2023” issued by the Ministry of Transport and Infrastructure introduced tax incentives and fleet quotas for rental companies incorporating electric vehicles, aiming to reduce carbon emissions and encourage sustainable transportation solutions nationwide. Rental companies are required to allocate a minimum percentage of their fleet to electric vehicles and comply with reporting standards for emissions and fleet composition.

Turkey Car Rental & Mobility Subscriptions Market Segmentation

By Type:

The market is segmented into various types, including short-term rentals, long-term rentals, subscription services, luxury rentals, electric vehicle rentals, corporate rentals, car sharing services, and peer-to-peer rentals. Each of these segments caters to distinct consumer needs and preferences, with demand influenced by factors such as travel frequency, business requirements, lifestyle choices, and sustainability concerns. The rise of digital platforms and mobile applications has further enabled growth in car sharing and subscription-based models, while luxury and electric vehicle rentals are expanding in response to changing consumer expectations and environmental priorities.

By End-User:

The end-user segmentation includes individual consumers, corporate clients, government agencies, tour operators, ride-sharing platforms, mobility-as-a-service (MaaS) providers, and others. Each segment reflects the diverse needs of users, ranging from personal travel and business mobility to tourism and public sector transportation. Corporate clients and individual consumers account for the majority of demand, while ride-sharing and MaaS providers are emerging as influential segments due to the integration of technology and evolving urban mobility patterns.

Turkey Car Rental & Mobility Subscriptions Market Competitive Landscape

The Turkey Car Rental & Mobility Subscriptions Market is characterized by a dynamic mix of regional and international players. Leading participants such as Avis Türkiye, Budget Türkiye, Europcar Türkiye, Sixt Türkiye, Garenta, Rent Go, Central Rent A Car, TCDD Ta??mac?l?k A.?., Yolcu360, Otorento, Hertz Türkiye, Enterprise Rent-A-Car Türkiye, Zipcar Türkiye, Moov by Garenta, TikTak contribute to innovation, geographic expansion, and service delivery in this space.

Turkey Car Rental & Mobility Subscriptions Market Industry Analysis

Growth Drivers

Increasing Urbanization:

Turkey's urban population is projected to reach 77% by future, up from 82% in 2020, according to the World Bank. This rapid urbanization drives demand for car rental services as more individuals seek convenient transportation options. The urban population growth translates to an increase in daily commuters, leading to a higher reliance on rental services for both personal and business travel, thereby boosting the overall market.

Rise in Tourism:

In future, Turkey is expected to welcome approximately 45 million international tourists, a significant increase from 44.6 million, as reported by the Turkish Ministry of Culture and Tourism. This influx of tourists creates a robust demand for car rentals, as visitors often prefer the flexibility of having their own transportation. The tourism sector's growth directly correlates with increased rental activity, enhancing market dynamics.

Technological Advancements in Fleet Management:

The adoption of advanced fleet management technologies is set to increase operational efficiency in Turkey's car rental market. By future, it is estimated that 60% of rental companies will implement AI-driven systems for fleet tracking and maintenance, according to industry reports. These technologies not only reduce costs but also improve customer satisfaction through enhanced service reliability, driving market growth.

Market Challenges

Regulatory Compliance Issues:

The car rental industry in Turkey faces stringent regulatory requirements, including licensing and safety standards. In future, compliance costs are expected to rise by 15% due to new regulations aimed at improving service quality and safety. This increase in operational costs can strain smaller rental companies, limiting their competitiveness and market presence.

Economic Instability:

Turkey's economy is projected to experience a GDP growth rate of only 4% in future, as per the IMF. This economic slowdown can lead to reduced consumer spending on discretionary services, including car rentals. Economic instability may also affect tourism, further impacting rental demand. Companies must navigate these challenges to maintain profitability in a fluctuating market environment.

Turkey Car Rental & Mobility Subscriptions Market Future Outlook

The Turkey car rental and mobility subscriptions market is poised for significant transformation in the coming years. With increasing urbanization and a growing emphasis on sustainable transportation, companies are likely to innovate their service offerings. The integration of digital platforms will enhance customer engagement, while the rise of electric vehicle rentals will align with global sustainability trends. As the market adapts to these changes, it will create new avenues for growth and customer satisfaction, positioning itself for a dynamic future.

Market Opportunities

Expansion of Mobility-as-a-Service (MaaS):

The MaaS model is gaining traction in Turkey, with an expected market value of $1 billion by future. This growth presents opportunities for car rental companies to collaborate with tech firms, offering integrated transportation solutions that cater to urban commuters, enhancing convenience and accessibility.

Growth in Electric Vehicle Rentals:

The demand for electric vehicles (EVs) is projected to increase by 30% in Turkey by future, driven by government incentives and consumer awareness. Car rental companies can capitalize on this trend by expanding their EV fleets, appealing to environmentally conscious consumers and aligning with global sustainability goals.