Electric Cars in Romania! Are Car Rental Companies Ready?

The global automotive industry is undergoing a major shift, with electric vehicles (EVs) often promoted as the future of mobility. Rental car companies were among the first to adopt this trend, driven by environmental concerns, European regulations, and rising customer expectations. But as global examples show, going electric isn't always straightforward. One of the most telling cases is that of Hertz in the U.S., which after a massive investment in EVs, was forced to sell off its electric fleet and report billions in losses. Against this international backdrop, the question arises: is Romania’s car rental industry truly prepared for this transition, or is it still too early?

The Global Picture: The Hertz Wake-up Call

In 2021–2022, Hertz made headlines with its bold commitment to electrify its fleet, including thousands of Teslas. But by late 2024, the company had sold over 30,000 EVs, acknowledging a staggering $2.9 billion loss. The reasons were clear: low customer demand, fast depreciation of EVs, high repair costs, and inconsistent charging infrastructure.

The Hertz case revealed that electrifying a fleet is not just a sustainability checkbox—it’s a strategic challenge. For emerging markets like Romania, it serves as a warning: without strong infrastructure, clear demand, and a long-term strategy, going electric may backfire.

EV Adoption in Romania

Romania’s rental car sector is cautiously testing the EV waters. While some companies offer models like the Dacia Spring or Nissan Leaf in major cities, most fleets still rely heavily on gasoline or diesel vehicles. The reasons mirror the global ones—plus a few local twists: poor charging infrastructure, lack of government incentives, and customer reluctance to try electric cars.

Infrastructure remains the biggest hurdle. While urban charging stations are slowly expanding, they are rarely close to rental hubs, tourist hotspots, or regional airports. Charging speed varies widely, and the fragmented payment systems often frustrate users.

And then there’s the human factor: first-time renters fear running out of battery, don’t know where to charge, and feel overwhelmed by unfamiliar apps. For many, the risk simply outweighs the novelty.

Hidden Costs and Operational Risks

EVs are still significantly more expensive to purchase than traditional cars. Government subsidies like Romania’s “Rabla Plus” help, but applying as a business is complex, and not always worthwhile. Add to that fast depreciation and uncertain resale value—especially as manufacturers frequently cut prices—and the financial equation gets tricky.

Repairs are another concern. EV components are costlier, and mechanics trained to service them are still rare. For a rental fleet operating at volume, these extra costs can quickly add up and eat into margins.

Long-Term Potential – But Not Yet

Despite the current drawbacks, EVs do have long-term potential. As infrastructure improves and battery prices fall, electric cars could eventually become cheaper to operate than combustion vehicles. Plus, companies positioning themselves as environmentally conscious might gain a loyal base of eco-minded customers.

But none of this is guaranteed. It requires long-term planning, smart pilot programs, and customer education. Without these, even the best intentions can lead to failure—just ask Hertz.

What Can Romanian Car Rental Companies Do?

First, avoid jumping in blindly. Instead of going all-in on EVs, start with a small test fleet in major cities. Monitor demand, get feedback, and adjust gradually.

Second, educate your customers. First-time EV renters need simple, clear guidance on charging locations, how payment apps work, expected driving range, and what to do in case of low battery.

Third, explore partnerships—with energy providers, leasing companies, or even city authorities. Co-financed charging stations or shared infrastructure projects can ease the transition.

Conclusion

Electrifying rental fleets in Romania may not be urgent in 2025, but it's certainly on the horizon. The question is not "if", but "how and when". The Hertz story is a cautionary tale—proof that electrification without planning can be more costly than doing nothing at all. For Romanian companies, the smart move is to tread carefully, invest in knowledge, and grow sustainably. In a highly competitive market, strategy beats trend-chasing—every time.