Some Car Leasing Firms See up to 20% Jump in Demand Ahead of Hari Raya

Why It Matters

The surge stresses the need for leasing firms to quickly augment fleets and diversify into hybrids, shaping profitability and competitive dynamics during Southeast Asia’s peak travel season.

Key Takeaways

• Car leasing demand spikes up to 20% before Hari Raya.
• Bookings arrive two months early, outpacing typical rental cycles.
• First‑time renter inquiries rise 50%, many unable to secure cars.
• Longer‑term leases reduce short‑term fleet availability for festive period.
• Firms consider rapid fleet expansion amid supply tightening and fuel costs.

Summary

Car leasing firms across the region are reporting a sharp uptick in demand ahead of the Hari Raya festivities, with some operators noting as much as a 20 % increase in short‑term rentals. Bookings are arriving up to two months earlier than usual, and first‑time renter inquiries have jumped roughly 50 %, straining an already thin fleet.

Industry insiders attribute the surge to a combination of longer‑term lease contracts locking vehicles out of the short‑term market and a broader tightening of supply after more than 220 leasing firms exited in 2025. Online platforms are seeing 20‑30 % more inquiries, while rising fuel prices are prompting customers to favor hybrid models despite higher upfront costs.

One operator highlighted that many vehicles now list two or three named drivers, suggesting informal car‑sharing among families. He warned that without rapid fleet purchases, firms risk turning away customers, and he cautioned that size alone does not guarantee contract security, noting reliable smaller firms are gaining trust.

The trend forces leasing companies to accelerate fleet expansion, balance long‑term and festive short‑term demand, and potentially reposition toward fuel‑efficient vehicles. Failure to adapt could cede market share to agile online rivals and erode revenue during the lucrative holiday period.

Original Description

Car rental demand in Singapore is picking up ahead of Hari Raya, but not everyone is able to secure a vehicle. Some operators said they had to turn away customers, with bookings coming in earlier than usual and demand up by as much as 20%. Industry players believe the surge could have stemmed from more vehicles being locked into longer-term rentals, leaving fewer options for short-term festive demand. Alexandra Anand reports.