Thursday, September 8, 2016

Localiza, Locamerica, Unidas, Hertz and Avis Budget are the major Car Rental Companies Operating in Brazil : Ken Research

Brazil car rental industry includes the revenues generated from the Rent a Car (RAC) segment and the fleet outsourcing and management segment. The revenues generated from self-driven car rentals and chauffeur driven car rentals comprise the Rent a Car market. The fleet size increased attaining a CAGR of 17.1% during the review period. The segment of corporate fleet outsourcing is on the rise when compared with most developed countries, the concept of outsourcing fleet holds huge growth potential in Brazil.


Companies operating in the Rent a Car (RAC) segment provide self-driven cars on rent for short term and long term rentals as well as chauffer driven cars for daily short distance travels. Individuals procuring vehicles on rent for a period less than a month include short term rentals. On the contrary, vehicles taken on rent for a period greater than a month but less than a year are known as long term rentals. In addition to this, car rental companies also provide vehicles for insurance replacement. In cases where an individual’s (under insurance) car is damaged and sent for servicing, insurance companies obtain vehicles from car rental companies and provide them to the insured for a stipulated period or until the damaged car is fixed.
In terms of revenue contribution however, the on airport segment has made a higher contribution to overall revenues in comparison to the off airport segment
The large car rental companies have been established in the country for a long period of time due to which they have obtained higher economies of scale. In order to reduce competition in the market, large companies acquire smaller car rental enterprises in order to further boost their presence in the market.
The segment of corporate fleet outsourcing is on the rise when compared with most developed countries, the concept of outsourcing fleet holds huge growth potential in Brazil.
The easing interest rates in the country coupled with positive movement of macro-economic variables is expected to compliment the growth of car rental revenues. The revenues from the Rent a Car (RAC); is expected to increase at a high rate as compared to the car leasing segment due to the arrival of the Olympics in Rio (2016).
For more information on the market research report please refer to the link below:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/brazil-car-rental-fleet-outsourcing-market/46888-100.html
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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