Lotte Rental announced Q2 consolidated revenue of 765.8 billion won and operating profit of 84.6 billion won on August 5, marking year-over-year increases of 2.3% and 9.6% respectively. The company attributed the results to sustained growth in core rental operations including auto long-term and short-term segments, alongside expanded high-margin product mix and cost efficiency improvements. The used car sales division experienced temporary adjustments due to market uncertainty, though structural improvements are materializing through conversion of quality vehicles to rental assets and expansion of the T Car retail platform.
Lotte Rental Q2 Financial Results Meet Analyst Expectations
The reported figures aligned closely with market consensus. Yonhap Infomax compiled forecasts from four domestic securities firms that issued reports within the past month, projecting Q2 consolidated revenue of 776.5 billion won and operating profit of 87.1 billion won for Lotte Rental.
Auto Long-Term Rental Revenue Reaches 421.5 Billion Won
Auto long-term rental revenue totaled 421.5 billion won in Q2, up 5.1% year-over-year, while operating profit reached 45.3 billion won, representing 25.6% growth. Quarterly vehicle deployment combining new and used cars reached 23,607 units, an 11.6% increase from the prior year, with net additions expanding 59.1% to 5,095 units.
The proportion of used car long-term rentals, which carry higher profitability, rose steadily from 14.1% in Q2 2024 to 17.9% in Q2 2025 and 20.6% in Q2 2026.
Foreign Tourist Demand Drives Short-Term Rental Growth
Increased foreign tourist arrivals boosted auto short-term rental performance. Q2 revenue reached 52.5 billion won and operating profit hit 9.9 billion won, up 15.6% and 76.2% year-over-year respectively. Foreign customers accounted for 37% of daily short-term rental revenue, a 7 percentage point increase from the prior year.
Biz Rental concentrated resources on competitive core products including measuring equipment and forklifts to enhance portfolio profitability. Combined revenue from the three main product categories increased 9.2% year-over-year in Q2.
Used Car Sales Decline Amid Market Uncertainty
The used car sales business recorded revenue of 217.1 billion won and operating profit of 26.4 billion won, down 2.9% and 21.1% year-over-year respectively, impacted by international developments and rising interest rates. Lotte Rental chose to convert quality vehicles into rental assets for used car long-term rentals and monthly short-term rentals rather than sell at discounted prices during unfavorable market conditions.
The T Car used car retail platform generated revenue of 30.9 billion won in Q2, up 108.8% year-over-year.
Lotte Rental Launches Japan Operations in Okinawa
Lotte Rental established a local subsidiary in Japan in July and partnered with Orix Auto, Japan's second-largest rental car company, to launch short-term rental car services targeting Korean travelers in Okinawa.
Choi Jin-hwan, President and CEO of Lotte Rental, stated: "As new growth drivers including T Car's rapid expansion and overseas business starting with Okinawa are getting on track, we will further solidify our leading position in the domestic mobility market based on differentiated vehicle operation capabilities and customer service competitiveness."
FAQ
What were Lotte Rental's Q2 revenue and profit figures?
Lotte Rental reported Q2 consolidated revenue of 765.8 billion won and operating profit of 84.6 billion won on August 5, representing year-over-year increases of 2.3% and 9.6% respectively.
Why did Lotte Rental's used car sales decline in Q2?
Used car sales revenue decreased 2.9% to 217.1 billion won and operating profit fell 21.1% to 26.4 billion won due to market uncertainty from international developments and rising interest rates. The company converted quality vehicles to rental assets rather than sell at discounted prices.
Where did Lotte Rental launch overseas operations?
Lotte Rental established a Japan subsidiary in July and partnered with Orix Auto to launch short-term rental services in Okinawa targeting Korean travelers.
