Auto-tech startups pave new road to growth even as sector suffers slowdown

The Indian car rental industry has grown at a CAGR of 24.6% during 2015-19 as new-age millennial consumers prefer experiences over ownership

The sentiment in the sector has been gloomy for over a year now. Several factors including the overall growth slowdown, new emission norms, and the weakening consumer confidence have forced several original equipment manufacturers to intermittently close production or cut jobs.

But some companies are surprisingly on a growth path. Auto-tech startups, which sell or rent old and new vehicles have seen their sales boom, and investors are queuing up to fund them. Many of these are online car sellers and some offer a range of after-sales service from tech support to insurance.

The crucial difference it seems is the