The revenues of the overall car rental industry in Brazil increased at a CAGR of 10.7% from 2010 to 2015. The increasing number of international arrivals and growing tourism market, rising per capita income among the middle class population, improving transport and road infrastructure and a growth in cell phone and internet users have resulted in an upward movement of car rental and leasing revenues. Despite fluctuations in economic indicators including the stock exchange, variations in dollar value and lowering of the investing risk degree, car rental companies remained one of the main clients for the automotive industry and were responsible for absorbing 13.6% of all cars and light utility vehicles licensed in 2015.
The outsourcing of fleet to public and private companies along with the government sector has been the most important factor in the North region. Due to long distances and lopsided infrastructural conditions, the daily rents arising from tourism have a smaller demand when compared to car rentals for medium and long term. In the North-East region, there is a higher demand for fleet outsourcing as compared to the daily rental of business and leisure trips. The North-East region is characterized by sun throughout the year, giving Brazilians and foreigners a look into the beaches and local culture. The middle-west region has the most significant share in the fleet outsourcing segment as agribusiness playing a strong influence in the local economy. In this region, the harvest and inter-harvest determines the use of rented vehicles depending on seasonality. Due to this, the rain and drought periods have the highest demand for car rentals. The South-East region has the biggest and most diverse market in the country with a large share in fleet outsourcing as well as business tourism and leisure trips.
Tourism has become a vital sector to the growth in Brazil’s economy with Rio de Janeiro and Sao Paulo amongst the most popular destination for international tourists. Major international events including the World Cup (2014) and the forthcoming Rio Olympics (2016) is said to create increased tourist spending in restaurants, cab services and bars. A majority of these tourists come from nearby areas including Argentina and the United States, however, large numbers also pour in from Germany and other European countries.
“According to Research Analyst at Ken Research, in order to maintain profitability and to achieve long term goals, it is essential that car rental companies enter into repurchase agreements with automobile manufacturers in order to mitigate the risk arising from unstable depreciation value. This would also help car rental companies maintain optimum fleet size and higher average revenue per available car day. Car rental companies should also target the northern region in Brazil as this area constitutes around 45.3% of the country’s national territory but has low penetration with respect to the presence of car rental companies’ service network. In addition to this, car rental companies can also recruit women chauffeur in order to broaden their brand image in the car rental industry.”
The report titled “Brazil Car Rental Industry and Toll Application Market Outlook to 2020 - Increasing Sporting and Cultural activities and Robust Tourism to Foster Future Growth” provides a comprehensive analysis regarding the performance of the car rental industry in Brazil. This report will help industry consultants, car rental and leasing companies, car aggregators, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.
Tags: Rent A Car, Fleet Outsourcing, Self Driven Car, Chauffer Driven Car, Revenue Split by Car Type, On Airport, Off Airport, Available Car Days, Revenue Per Car Day, Replacement Rate, Utilization Rate, Average Daily Rental, Average Age of Operating Fleet, Service Network, Rental Locations
Companies Covered: Localiza, Locamerica, AVIS Budget Group, Hertz, UNIDAS, Movida, Ouro Verde, ALD Automotive
For more Details visit : https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/brazil-car-rental-fleet-outsourcing-market/46888-100.html