Tourism Driven Rental Car Demand in Oman 2025: Impact on Used Car Supply & Quality

By OmanWheels Automotive Insights | Updated November 2025

As Oman’s tourism industry accelerates in 2025—fueled by international arrivals, domestic travel, and infrastructure projects—one sector is experiencing a direct and measurable impact: the car rental industry. The surge in tourist numbers, especially during key seasons like the Salalah Khareef, is driving a new wave of vehicle acquisitions by rental companies, which in turn influences the used car market’s supply, pricing, and quality. Used Commercial Vehicles on the Rise in Oman 2025.

Tourism Growth in Oman 2025: A Quick Snapshot

According to the Ministry of Heritage and Tourism, Oman aims to attract over 5 million visitors annually by 2030, with 2025 marking a crucial mid-decade milestone. The country’s renewed focus on sustainable and high-quality tourism is increasing flight connections, hotel occupancy, and road travel demand.

With this tourism boom, rental fleets are expanding rapidly to meet the mobility needs of visitors—especially in tourist-heavy zones such as Muscat, Nizwa, Sur, and Salalah.

How Rental Companies Are Responding: Fleet Expansion & Renewal

Rental car companies in Oman—including major operators like Budget, Dollar, Europcar, and local players such as Mark Tours and Oman National Transport—are upgrading their fleets to meet higher seasonal demand and customer expectations.

These companies typically renew their fleets every 12–24 months, meaning that hundreds of vehicles are sold into the used market each year. In 2025, with record tourist bookings, this cycle is accelerating. The most commonly added models include:

• Toyota Yaris, Corolla, and RAV4
• Nissan Sunny and X-Trail
• Hyundai Elantra and Tucson
• Kia Sportage and Seltos

Salalah Khareef Season: The Catalyst for Fleet Turnover

The Khareef (monsoon) season in Salalah is Oman’s prime domestic tourism window. During this time, rental car utilization rates exceed 90%, prompting operators to temporarily expand their fleets. Once the season ends, many of these vehicles enter the resale market.

Impact on the Used Car Market in Oman

The rental industry’s renewal cycle has become one of the strongest feeders into Oman’s used car supply chain. With an average of 18–24 months of usage, ex-rental cars are relatively new, well-maintained, and often under warranty.

1. Improved Used Car Quality

Buyers in Oman are finding higher-quality used vehicles thanks to ex-rental units. Most are serviced through authorized dealers, and odometers typically read below 60,000 km.

2. Stabilized Used Car Prices

As supply increases, especially post-tourism seasons, prices for sedans and small SUVs have seen a 5–8% stabilization compared to 2023 levels. Fleet vehicles entering the market create healthy competition among private sellers and dealerships.

3. Better Vehicle History Transparency

Most rental cars come with digital maintenance records, giving buyers confidence. Platforms like OmanCarz and Dubizzle Oman now highlight “fleet-owned” vehicles as a badge of quality rather than concern.

Rental Car Market 2025: Demand Overview

How This Shapes Oman’s Automotive Ecosystem

Dealership Benefits

Dealerships gain steady volume sales through corporate rental purchases, enabling stronger year-end targets and discounts from manufacturers.

After-Sales Service Growth

With fleets expanding, demand for after-sales services—such as scheduled maintenance, tire replacements, and genuine parts—has also risen by 10–12% in 2025, benefiting authorized service centers.

Used Car Dealers’ Advantage

Dealers specializing in 1–2-year-old cars now have access to cleaner, well-maintained stock from fleet liquidations, boosting consumer trust and resale value.

Challenges: Fleet Management, Depreciation & Oversupply

While the trend benefits buyers, rental companies must balance the risk of oversupply post-tourism seasons. Oversaturation of similar models (e.g., Nissan Sunny, Toyota Corolla) can suppress resale prices. Additionally, high mileage from repeated rentals accelerates depreciation.

Depreciation Comparison by Brand (2025 Estimate)

Future Outlook: A Balanced Market Ahead

By late 2025 and into 2026, Oman’s automotive ecosystem is expected to reach a healthier equilibrium between new car sales, rental fleet cycles, and used car supply. The tourism-driven demand is helping renew the nation’s on-road fleet with newer, more fuel-efficient models—indirectly contributing to lower emissions and improved road safety. Vehicle Colour & Engine-Size Trends in Oman 2025.

Key Takeaways

• Tourism expansion directly boosts rental car demand in Oman.
• Fleet renewals enhance the quality and transparency of used cars available.
• Seasonal peaks like Salalah Khareef create short-term supply surges post-season.
• Used car prices stabilize as a result of consistent fleet offloads.
• The overall automotive market benefits from increased circulation of newer vehicles.

Conclusion: A Win-Win for Tourists, Rentals, and Used Car Buyers

Oman’s 2025 tourism growth story isn’t just about flights and hotels—it’s equally about wheels. The country’s car rental sector plays a quiet yet crucial role in maintaining a modern, safe, and affordable vehicle ecosystem. Tourists get reliable mobility, rental firms sustain profitability, and local buyers enjoy better-value used cars.

As the nation continues its Vision 2040 goals, integrating tourism with mobility infrastructure will remain a key growth driver for both the economy and the automotive industry.

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