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Automobile
India's Centre trims car‑rental fleet rule, lowers minimum to five vehicles
✍️ TOI India
🗓 12 Nov 2026, 09:36 AM
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The Union government has revised its draft guidelines for the car‑rental sector, reducing the mandatory minimum fleet size from the earlier proposal to just five vehicles.
New Delhi – The central government has moved to liberalise the domestic car‑rental market by amending its draft policy framework. The revision slashes the previously suggested minimum fleet requirement, now setting the floor at five vehicles per operator.
The change is intended to lower entry barriers for small entrepreneurs and regional players, thereby expanding the supply of rental cars across the country. Officials said the measure will complement broader efforts to boost tourism and improve last‑mile connectivity.
The Ministry of Road Transport and Highways will circulate the updated guidelines for public comment before finalising them, with an eye on implementation in the coming financial year.
The change is intended to lower entry barriers for small entrepreneurs and regional players, thereby expanding the supply of rental cars across the country. Officials said the measure will complement broader efforts to boost tourism and improve last‑mile connectivity.
The Ministry of Road Transport and Highways will circulate the updated guidelines for public comment before finalising them, with an eye on implementation in the coming financial year.