Iceland sees dramatic drop in car rental registrations with nearly 90% decline compared to last year

There has been a significant decline in car rental registrations in Iceland, with nearly a 90% drop compared to the same period last year. In August 2024, car rental companies recorded only 34 new passenger cars, a stark contrast to the 280 registered in August 2023. This represents a staggering 87.9% decrease.

For the year so far, 4,473 new passenger cars have been registered by rental companies, down from 6,539 during the same period last year, indicating a 31.6% reduction in vehicle imports for rentals.

The registration statistics for individual car owners are similarly alarming. In August 2024, 313 new vehicles were registered by individuals, a decline of 56.4% from the 718 registered in August 2023. Year-to-date figures show 2,346 new individual registrations compared to 4,637 the previous year, reflecting a 49.4% drop.

Electric vehicles have gained a larger share of the market, accounting for 41.4% of new registrations in August, though this marks a 72.5% decrease from the same month last year. Hybrid vehicles followed at 21.1%, experiencing a 25.8% reduction in registrations year-on-year. Plug-in hybrids comprised 19.8% of the new registrations, with a 24% drop.

In terms of diesel and petrol cars, diesel vehicles made up 9.7% of registrations, showing a 66.2% decline from August 2023, while petrol cars accounted for a mere 8% of the total registrations, down by 54.3%. This pattern indicates a broader trend of declining interest in traditional fuel vehicles as well.