SUVs and Gen Z Boost Self-Drive Travel in India’s Tier 2 and 3 Cities

Gen Z drives surge in short getaways and SUV rentals, while Tier 2 and 3 cities fuel growth in self-drive travel across India.

13 Aug 2025 | 3032 Views | By Sarthak Mahajan

Zoomcar Holdings, a prominent player in India’s self-drive car rental market, has released its Travel Trends 2025 report, highlighting evolving consumer behavior in road travel across the country. The findings are based on internal booking and usage data comparing financial year 2024 (FY2024) with financial year 2025 (FY2025).

The report indicates a growing preference for short-duration trips, with 71% of all bookings involving journeys of less than two days—an increase from 66% in 2023. At the same time, longer trips lasting over seven days saw a 28% rise year-on-year, potentially reflecting an uptick in work-related travel and extended stays enabled by remote work arrangements.

A notable shift in user demographics is also evident. Travelers aged 18 to 25—classified as Generation Z—accounted for 31% of total trips in FY2025, up from 22% the previous year. This group is increasingly opting for solo travel and visiting less conventional destinations, often with flexible travel schedules.

Vehicle preferences are also changing. Bookings for SUVs rose from 30% to 36% of total rentals, while demand for hatchbacks declined from 57% to 51%. Vehicles with higher seating capacity (6–7 seater models) saw their share grow from 16% to 18%, suggesting a rise in group and family travel.

The trend is not limited to major metropolitan areas. Self-drive rental demand from Tier 2 cities increased by 30%, and bookings from Tier 3 cities rose by 14%. Cities such as Jaipur, Indore, Siliguri, and Madurai recorded significant growth in rental activity, indicating broader geographic adoption of self-drive travel.

Festive weekends—including Holi, Republic Day, and Gandhi Jayanti—saw a 125% increase in bookings compared to regular weekends, underscoring a growing tendency for spontaneous, occasion-based travel rather than pre-planned vacations.

Abhilash Kasliwal, Business Head at Zoomcar, commented on the findings: “The data reflects a maturing self-drive market, where flexibility and accessibility are key drivers. Whether for short breaks, family trips, or income generation through car sharing, the ecosystem is expanding beyond urban centers and traditional travel patterns.”

Customer satisfaction levels remain high, with 80% of trips receiving ratings of four stars or above in 2025, up from 76% in 2023. This suggests increasing user confidence in the reliability and quality of the service.

Zoomcar’s peer-to-peer car sharing model continues to gain traction as a source of supplemental income. By May 2025, hosts on the platform had earned a cumulative ₹640 crore. Nearly 49% of active hosts held a rating of 4.5 stars or higher, and top-performing hosts earned up to ₹7 lakh per year per vehicle. The platform is increasingly seen as a viable option for micro-entrepreneurship.

Additionally, home delivery services gained popularity, with a 33% increase in such bookings during the first five months of 2025 compared to the same period in 2024. This reflects a growing preference for convenience and contactless access to rental vehicles.

As self-drive travel becomes more integrated into everyday mobility, Zoomcar emphasized its focus on expanding a sustainable, host-supported network that supports diverse travel needs across India.

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