SINGAPORE — Autobahn Rent A Car has temporarily halted its vehicle rental operations after facing mounting financial pressures, particularly from outstanding debts owed to a major black-plate vehicle financier.

In a statement on Monday (Jan 5), the company confirmed that it has “suspended” rental services for both private-hire drivers and other customers. The move follows financial difficulties that made it increasingly challenging for the firm to maintain its fleet and meet obligations.

Autobahn’s decision has left some private-hire drivers, who depended on its rental vehicles for daily earnings, in a difficult position. The affected drivers have expressed concern as they scramble to secure alternative arrangements to continue working. The situation underscores the growing strain within the car rental and private-hire ecosystem, where operators and drivers are dealing with rising costs and tightening credit conditions.

The company said it is engaging with creditors and exploring possible restructuring options but did not provide a specific timeline for when normal rental operations might resume.

Industry watchers said Autobahn’s suspension highlights broader challenges in Singapore’s mobility sector, where smaller operators are vulnerable to economic headwinds and shifts in demand.

This development comes amid increasing competition from larger rental companies and persistent financial pressures from maintenance, insurance, and regulatory costs.