The Italian car rental sector has closed the second quarter of 2026 on a positive note, registering a total of 165,804 new passenger cars and LCVs. The figure recorded in Q2 2026 is up by 3.3% year-over-year and allows the domestic market to secure 33.1% share of all new car sales in Italy. In other words, for every ten cars registered in Italy in the second quarter, one was registered in the rental sector.
On a six-month basis, the share of rental vehicles is even higher, at 33.4%, compared to 29.6% at the end of last year. Despite the positive dynamics, the development of the rental sector is not entirely consistent, as the growth is driven almost exclusively by short-term rentals, while the long-term segment is posting a decline.
Short-Term Rentals Drive Growth
Short-term rentals were the growth driver for the Italian car rental sector in 2026. The channel recorded a total of 53,243 new vehicle registrations in Q2, up 23.67% year-over-year. Both passenger cars (+21.86%) and LCVs (+54.32%) contributed to the growth, with the latter registering the strongest increase.
The first-half result is also strong, as the short-term channel recorded tens of thousands of new vehicle registrations, with analysts noting that the figure reflects a structural trend rather than a one-time phenomenon. The channel’s appeal is driven by both tourism and business travel, as well as the flexibility it offers.
Long-Term Rentals Dip, But Context Matters
By contrast, the long-term rental channel recorded a setback in 2026. The channel recorded 112,561 new vehicle registrations in Q2, down 4.13% year-over-year. Passenger cars accounted for 98,943 units, down 0.97%, while LCVs totaled 13,618, down 22.18% year-over-year.
While the figure for the long-term rental segment may appear disappointing at first glance, it should be taken with a grain of salt, as the channel recorded an exceptional result in Q2 2025. With the expiry of the Consip public tender, the growth rates for captive operators in the second quarter of 2025 totaled 80%, 42%, and 22% for short-, medium-, and long-term rentals, respectively. Excluding the effect of the tender, the result for Q2 2026 is actually significantly better than it appears.
Shifting Powertrain Preferences
The Italian car rental sector is undergoing a structural energy transition as well, with petrol engines remaining the most popular powertrain solution. However, the rise of plug-in hybrid cars is proving to be more spectacular than the decline of diesels. In fact, PHEVs recorded the strongest increase, with their share rising to 18%, compared to 13% for petrol cars and 13.4% for hybrids. As for battery electric vehicles, they accounted for just 3.85% of new car sales in the Italian rental sector. Diesel remained the preferred powertrain for LCVs in the short-term rental segment, accounting for 95.3% of all new vehicle sales.
Outlook
The strong performance of the short-term rental segment and the structural shift to PHEVs suggest that the Italian car rental sector remains a growth driver for the local automotive industry. At the same time, the weakness in the long-term segment appears to be more of a structural issue than anything else, given the spectacular growth recorded in Q2 2025. As such, the divergent trends recorded by the Italian car rental sector in 2026 are unlikely to be a problem for now.
