Home Economy Long-term car rental: business picks up speed, but not for everyone

Long-term car rental: business picks up speed, but not for everyone

In the first quarter of 2025, contracts rise thanks to dealers, private users and short-term rental companies—non-automotive firms decline

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Q1 2025: long-term rental gains ground in Italy

The Italian long-term car rental market continues to grow in the first quarter of 2025. According to UNRAE data based on figures from the Ministry of Infrastructure and Transport, 254,328 contracts were signed, marking a 6.5% increase compared to the same period in 2024.

Companies remain the main drivers of the sector, accounting for 84.7% of contracts, while private individualsrepresent 15.3%. However, not all market segments are moving at the same speed.

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Companies: mixed performance across segments

A closer look reveals diverging trends. Non-automotive companies still hold the lion’s share of the market (64.4%), but suffer a 11.1% decline in volume. In contrast, other sectors are on the rise: short-term rental companies skyrocket by +300.9%, driven by fleet renewals; dealers and manufacturers grow by +55.6%, while long-term rental firmsreport a +9.6% increase.

Private users also contribute to the overall growth with a +13.1% jump, showing that long-term rental is becoming more popular beyond corporate use.

Shorter contracts across the board

One of the emerging trends is the reduction in average contract duration, now down to 20 monthsNon-automotive companies sign for an average of 23 monthsprivate users for 21short-term rental firms for just 8 monthsLong-term rental companies settle at 11 months, and dealers/manufacturers at 15 months.

Fuel types: diesel holds, hybrids rise, electric still niche

Fuel preferences remain diverse. Diesel is still the top choice for non-automotive companies (41.7%) and long-term rentals (39.6%). Short-term renters opt mainly for petrol cars (55%), while dealers and manufacturers lead the way with electric vehicles (29.1%), followed closely by petrol (28.9%).

Private individuals favor hybrid vehicles, which account for 29.3% of their contracts—a sign of increasing environmental awareness among consumers.

Top segments: C-SUVs lead the pack

C-segment SUVs remain the top choice across all categories, making up 27.8% of all contracts. They’re especially popular with private users (30.7%), non-automotive companies (29.1%) and long-term rental firms (25.7%). In second place are B-segment SUVs (20%), mainly chosen by short-term renters (39.5%) and dealers (28%).

Among sedans, B-segment models dominate (9.8%), while station wagons hold a respectable 10.2%, thanks mostly to non-automotive companies (12.8%).

Geography: North dominates, South sees private boom

Lombardy leads the way with 29.3% of all contracts, followed by Lazio (15.8%), Trentino-Alto Adige (10.8%), Emilia-Romagna (7.4%), Piedmont (6.8%) and Campania (6.4%).

Interestingly, private users are most prominent in the SouthCalabria (37.7%), Molise (35.9%) and Sicily (32.1%) top the list. Trentino-Alto Adige also stands out for its dominance of short-term rental companies, with a share of 79.4%, followed by Sardinia at 62.1%.

Cars registered in 2024: hybrid wins, BEV still lagging

UNRAE also analyzed contracts signed for cars registered in 2024, totaling 351,448 units (a single car can be linked to multiple contracts). Non-automotive companies again lead with 63.4%, followed by short-term rental (16.4%) and private users (13.2%).

Looking at fuel types, hybrids come out on top (36.6%), ahead of diesel (28.4%) and petrol (22.0%). Battery electric vehicles (BEVs) only reach 4.9%, while plug-in hybrids hit 7.3%.

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