العربية
English
Feasibility Study for an Electric Car Rental Project
Feasibility Study for an Electric Car Rental Project
The project aims to establish a company specializing in electric car rentals within the Kingdom of Saudi Arabia, to meet the growing demand for eco-friendly and energy-efficient transportation solutions. The initial focus will be on major cities such as Riyadh, Jeddah, and Dammam, with potential expansion to tourist destinations like AlUla and Abha in the future.
The business will rely on an integrated digital application that allows users to easily rent electric cars, along with additional services such as car delivery, real-time customer support, and electronic payments.
The project targets a wide range of customers—from individuals seeking economical and environmentally conscious transportation, to companies and organizations looking for clean mobility solutions for their employees.
Study Content
Targeted Products and Services
Targeted Products and Services
The project will provide electric car rental services for various durations—by the hour, by the day, and by the month—to suit the diverse needs of customers. Among the basic services offered by the project:
Renting electric cars at competitive prices including insurance and regular maintenance.
A smart application that allows booking, payment, vehicle tracking, and reporting problems.
The possibility of delivery to the customer’s location and collecting the car after the rental period ends.
Offering special monthly subscription packages for companies and government and private institutions.
Providing free charging service or including it in the monthly subscription according to agreement with customers.
Mobile technical support around the clock, with regular and comprehensive maintenance of the car fleet.
Demand and Market Analysis
Demand and Market Analysis
The Kingdom is witnessing a rapid shift toward a green and sustainable economy, making electric vehicles a strategic option supported by both the government and society.
Consumer interest in environmentally friendly services is increasing, especially among youth, urban families, and companies seeking to reduce their carbon footprint.
The entry of electric vehicles into the Saudi market has begun to expand with the arrival of global companies and increased infrastructure support, such as the establishment of charging stations in cities, shopping centers, and airports.
Reports indicate that demand for flexible and cost-efficient transportation is on the rise, especially with the growing population and the increasing number of tourists and visitors under Saudi Vision 2030.
Although there are some competing projects in the traditional car rental sector, the electric car rental market is still new and presents a strong opportunity to enter the competition and capture an early market share.
Investment Advantages
Investment Advantages
This project represents a promising investment opportunity for several reasons:
Lower Operating Costs: Electric vehicles have up to 50% lower operating costs compared to traditional vehicles, due to reduced maintenance needs and the absence of high fuel expenses.
Government Support: There is both direct and indirect government support for the adoption of electric vehicles, which facilitates obtaining licenses and encourages investment in related infrastructure, such as charging stations.
Alignment with Environmental Trends: The project aligns with both global and local environmental trends, making it easier to obtain funding from green investment funds or establish strategic partnerships with environmental or technology-focused entities.
Digital Platform Opportunities: Relying on a digital application opens future opportunities to expand into smart mobility services, such as introducing electric bikes or partnering with public transport companies, hotels, and airports.
Project Advantages
Project Advantages
Aligns with Saudi Vision 2030 in the fields of sustainability and green transformation.
Reliance on technology and smart applications enhances operational efficiency and reduces costs.
Increasing demand for economical and modern transportation ensures a growing market.
Low failure rates and operating costs due to the nature of electric vehicles.
Potential for future expansion inside and outside the Kingdom, especially in neighboring countries following the same direction.
Opportunity to build a flexible and popular brand among consumers, especially the youth segment.
Financial Indicators
Financial Indicators
The initial capital for the project is expected to range between 12 to 18 million Saudi Riyals, to cover the cost of purchasing an initial fleet of electric cars (between 80 to 120 vehicles), in addition to building the technical and operational infrastructure, and operating the project in its first year without the need for immediate income.
The expected Internal Rate of Return (IRR) is estimated between 14% and 18%, depending on the number of cars and the volume of daily operations. This return is considered good compared to traditional projects, especially when taking into account the significant reduction in operating costs.
The capital is expected to be recovered within a period ranging from four to five years, which could be shorter if the customer base expands quickly or long-term rental contracts are signed with companies and institutions.
Request a Consultation
As an ambitious entrepreneur, we partner with you to pave the way for success, ensuring exceptional results and a lasting impact.
Book an Appointment
With our expert consulting team, we stand by your side as dedicated partners in turning your vision into reality.