Artificial Intelligence and electric vehicles will not quietly fade into the past, no matter what car rental operators may think or prefer.

In fact, AI may be moving faster, and EVs slower, but they are well on their way to alter the future of the industry, asserted America Car Rental Association Chairman Sharky Laguana on May 14 during the group’s annual presentation at the International Car Rental Show.

Prepare for a Surge in Lower-Cost EVs

Laguana, who has served on a federal EV advisory group during the Biden Administration, punctured some media myths about EVs, peppering his points with his trademark colorful flair as he addressed the progress in EV sales, battery longevity, affordability, and range.

“EVs are still coming. And it will happen. It will be the dominant form of transportation,” Laguna told the audience of ACRA and ICRS attendees.

Despite the sunset of federal credits and bolder resistance to fleet electrification since last year, Laguana pointed out that blue states such as Michigan saw 50% growth in registered EVs last year, and Colorado had 41% more registrations. In the number two spot, Louisiana, a red state, saw 42% growth in registered EVs.

And increases of 83% in Connecticut, 72% in New York, and 70% in Alaska.

“Geotab did a study and wanted to know: How healthy are the batteries? How long will they last? It turns out, this belief that the batteries will fail soon is old news. Right now, EV batteries will last longer than the useful life of the car.”

To counter EVs’ reputation for high prices, Laguana pointed to a growing number of all-electric models from various automakers that offer 400 miles of range for less than $30,000. He said Ford, despite discontinuing the F-150 Lightning pickup, is developing a truck model expected to launch in 2027 for under $30,000.

Meanwhile, Europeans can buy an EV with about 250 miles of range for under $10,000, and it looks just like a Toyota Corolla or a Honda Civic, Laguana said. “As I've said repeatedly, you'll never convince me that American consumers are not going to buy that car when it becomes available, especially when you look at the degree of economic strain that so many people are enduring.”

EVs are not about politics but revolve around economics and math, he said.

“I’m not saying you should invest in EVs or buy a large number of them now,” he said. “Some of our colleagues have lost a lot of money with that strategy, while others have made a lot. You need to know what you’re doing. But they are coming.”

AI Should Unite the Car Rental Industry

On the topic of AI, Laguana described a technological “flip” from software-as-a-service (SaaS) to service as software, with AI enabling technological paces and cycles measured in minutes, not weeks, months, or years.

“It's a little scary and a little intimidating. What does this mean for us? Anthropic has conducted an economic study and concluded that AI will impact many businesses. But there are two industries that are uniquely safe from AI. One, the safest job to have in an AI universe is a bartender. Number two, transportation. AI will not move humans from one place to another.”

That points to how the rental car industry should think about “navigating this

precipice into a future that really has no paradigm,” he said. “Ultimately, technology will not matter for you as much as your connection to human beings.”

But he warned that, “If you thought that you could sit back and not talk to anybody and just do your thing in the background, AI is coming for you. We will have to stick together and work together.”

A Growing ACRA Action List

Laguana’s remarks introduced ACRA’s expanding frontline agenda for the year, one that carries greater weight, demands more clout and influence, and leaves no room for resting on laurels.

“ACRA has just been going at a pace that is astounding,” he said. “We have matched the energy of the moment.”

Laguana and ACRA President Don LeFeve detailed how, during the first five months of 2026, ACRA expanded its advocacy efforts, strengthened member resources, and increased its presence with lawmakers and regulators at the state and federal levels.

“If you're wondering what we're doing, we're busy,” Laguana said. “And we're going to get busier. Too many legislators don't view the car rental industry as an industry. They view us as a piggy bank on wheels. This is why we need to educate them.”

Key past and ongoing accomplishments highlighted during the association’s ICRS conference included:

• Helping defeat or oppose rental-car-specific taxes, fees, and legislative proposals in several markets, including St. Louis, Georgia, Hawaii, Rhode Island, Maryland, and South Carolina.
• Advocating on behalf of operators in disputes involving peer-to-peer vehicle platforms, airport concession parity, customer facility charges (CFCs), vehicle registration requirements, and other operational issues affecting rental businesses.
• Supporting key legal matters with broader industry implications, including cases in New York and Colorado involving rental car operators.
• Engaging with airport, transportation, and environmental regulators on issues affecting fleet operations, including FAA-related matters, LAX regulatory concerns, and California emissions-policy developments.
• Developing legislative language, member advocacy resources, and outreach tools designed to improve the industry's ability to respond quickly to emerging policy threats.
• Launching a new podcast, expanding ACRA’s social media presence, upgrading the association website, and improving member communications.
• Building and launching ACRA’s first member portal while automating portions of the membership process to improve access to association resources.
• Continuing member education through webinars and starting to develop Car Rental University, a video-based training program aimed at new industry entrants and operators.
• Expanding industry security initiatives by collaborating with law enforcement, tracking emerging fraud trends, and establishing a partnership with the Gift Card Fraud Alliance.
• Growing ACRA’s grassroots advocacy network, which Laguana and LeFeve credited with helping mobilize members to engage lawmakers quickly on issues ranging from state tax proposals to federal vehicle-data-access legislation.
• The leaders emphasized that member participation remains central to the association’s strategy, noting that rapid-response advocacy and direct visits with elected officials are more vital than ever, as too many lawmakers view the rental car industry as a potential source of new taxes and fees.

In closing, Laguana cited fuel price spikes from the Middle East conflict as an example of how an association can make a difference.

“It’s important for a trade association to help share and distribute information, collect it, organize it, and then disseminate it,” he said. “Because there will be winning and losing strategies. You saw it in the 1970s during the fuel crisis. There were companies that did well and ones that went out of business. I want our members to succeed. That's why we're here.”

Many of these issues and governmental matters will define the upcoming ACRA 2026 Annual D.C. Industry & Policy Conference, being held Sept. 22-25 in Washington, D.C. ACRA members will lobby Congressional representatives and their staffs and attend conference sessions that detail the many issues and challenges facing the car rental industry. Information:www.acradrivesamerica.org