The car rental market has seen a gradual but steady rise in the adoption of electric vehicles (EVs). According to recent data from a prominent European portal, only 2.1% of rental cars globally were electric last year. However, this statistic masks significant regional variations and an upward trend. The study analyzed over 10 million bookings across Germany, Austria, and Switzerland in 2023 and 2024, highlighting differences driven by local availability. Scandinavian countries lead in EV rentals, with Norway and Sweden boasting impressive figures of 20.4% and 16.4%, respectively. Other notable countries include France, Belgium, and Switzerland. Conversely, southern Europe and the United States lag behind, with Italy, Spain, and Austria recording much lower percentages.

In regions where electric vehicle registrations are high, the rental market still lags. For instance, while nearly all new cars in Norway are electric, only about one-fifth of rental bookings involve EVs. This discrepancy suggests that despite the growing popularity of electric vehicles, their presence in the rental sector remains limited compared to broader automotive trends.

Regional Disparities in Electric Vehicle Rental Penetration

The analysis reveals stark contrasts in the adoption of electric vehicles across different regions. In northern Europe, particularly Scandinavia, EV rentals have gained significant traction. Countries like Norway and Sweden have achieved remarkable milestones, with electric cars accounting for over one-fifth and one-sixth of all rentals, respectively. These figures far exceed the average for new EV registrations in Europe. Other countries such as France, Belgium, and Switzerland also report relatively high shares, indicating a growing acceptance of electric vehicles in these markets.

This regional disparity can be attributed to several factors. Firstly, the availability of electric vehicles in rental fleets plays a crucial role. In countries like Norway and Sweden, the higher proportion of EVs available for rent reflects a proactive approach by rental companies to cater to environmentally conscious consumers. Additionally, government policies promoting electric vehicles may influence both supply and demand. In contrast, southern European countries and the United States show much lower adoption rates, with Italy, Spain, and Austria reporting minimal electric vehicle rentals. This highlights the need for targeted initiatives to boost EV availability in these regions.

Market Trends and Future Prospects

Despite the overall low percentage of electric vehicles in the global car rental market, there is a clear upward trend. Countries leading in EV adoption, such as Norway and Sweden, demonstrate that rental companies can successfully integrate electric vehicles into their fleets. Germany, with a slightly higher share than the global average, shows promise as it continues to expand its EV offerings. The data suggests that as more electric vehicles enter the market, rental companies will likely follow suit, increasing the availability of EVs for travelers.

The gap between new EV registrations and rental bookings underscores the challenges faced by the industry. In Norway, for example, while nine out of ten new cars sold are electric, only two out of ten rental bookings involve electric vehicles. This discrepancy indicates that rental companies may not yet fully align with consumer preferences or market trends. Moreover, rental cars tend to be newer models, which means that older vehicles do not skew the statistics. As electric vehicles become more prevalent in the broader automotive market, the rental sector will need to adapt quickly to meet growing demand. Initiatives to increase EV availability in rental fleets, especially in regions with lower adoption rates, will be crucial for driving future growth.