Car rental is a platform that offers renting vehicles/automobiles for specific periods, ranging from hours to a few weeks. This service is served by car rental agencies to the people who require a vehicle for the temporary and do not want to own a car. Car rental the agency also serves to the self-moving industry needs, by renting the vans, trucks, motorcycles or scooters. Along with the basic rental service, car rental agencies also serve value-added products such as global positioning system (GPS) navigation systems, insurance, mobile phones, entertainment systems, portable WiFi etc.

Market Estimates:

The Mexico car rental market is estimated to account for US$ 1,625 Mn in terms of value by the end of 2019.

Drivers:

Improving living of standard in Mexico and rising number of a manufacturing unit in the country is creating more employment which in turn resulting in increased disposable income. This has resulted in a rising number of trips by leisure travelers to leisure destinations is leading raise the demand for car rental service. Therefore, this is projected to propel the market growth of car rental in the Mexico. Moreover, the strong presence of major players such as Hertz, Avis, Alamo, Budget, Thrifty etc. in the country is also projected to boost the market growth.

Regional Insights:

Mexico City dominated the Mexico car rental market in 2018, accounting for 30.4% share in terms of value, followed by Cancun and Guadalajara, respectively.

Mexico Car Rental  | Coherent Market Insights

Market Restraints

The business is likely to get affected by various economic factors such as level of economic activity in the industry in which the player. Moreover, for a car rental agency, reduction in economic activity can results in decline both in business and leisure travel and ultimately a reduction in the volume of car rental service. Furthermore, car rental service can reduce the rate due to competitive pressure, which is projected to hamper market growth.

Market Opportunities

The advent of new business models has presented lucrative growth opportunities to the car rental services industry. For instance, the aggregator model offer rental companies to connect with actual car owners; this eases the renting process, and also add significantly benefits of cost and reduce the risk of in term of investment compared to the old business model which was followed by most of the car rental companies. Therefore, the rising introduction of advance approach for car rental agencies is expected to fuel the market growth over the forecast period.

Introduction of electric vehicle and Hybrid Vehicles due to rising implementation of strict emission regulations in order to reduce pollution is encouraging the transport companies to add electric and hybrid vehicles in their services. However, demand for these vehicles are currently low in the region, but it is projected to rise significantly over the forecast timeframe. Therefore, rising introduction of electric and hybrid vehicles is projected to offer immense growth opportunities to the market of car rental.

Mexico Car Rental  | Coherent Market Insights

Segment Analysis:

Economy car segment was valued at US$ 378.4 Million in Mexico car rental market in 2018 and is expected to register a CAGR of 8.6% between 2019 and 2027.  

Mexico Car Rental  | Coherent Market Insights

Market Trends/Key Takeaways

Rising trend of using economy and compact cars from leisure travelers and demand for cars is shifting from compact cars to intermediate or SUVs owing to an increased number of business travelers is gaining significant traction in the market. Rising number of business travelers who preferred to adopt SUVs over other compact cars are projected to fuel the market growth over the forecast period. For example, Veracruz is projected to be the new business city in Mexico due to growing foreign direct investments in the city.

The increasing trend of upgrading technologies by companies to make service more convenient and user-friendly. The trend is protected to continue because online car booking and car rental services are on the rise in the region. This is projected to propel market growth.

Competitive Section:

Players active in the market are The Hertz Corporation, Sixt SE, Avis Budget Group Inc., Alamo, National Car Rental, Europcar Group S.A., MEX Rent a Car, Budget Rent A Car System, Inc., Fox Rent A Car, and Thrifty Car Rental, Inc.

Rental cars in most cases are cheaper than public transport such as buses or trains. Therefore, to explore the beauty of Mexico, most of the travelers adopt rentals cars for travelling. Also, renting a car saves time, money, and offer comfort to travel anywhere with many car options. Therefore, rental cars are gaining popularity among end users.      

Market Dynamics

The rising number of investments in the country is expected to foster the market growth of car rental. For instance, FlexClub, a South African a startup that matches investors and drivers for ride-hailing services, closed a $1.2 million seed round led by CRE Venture Capital. The company is using financing to add team members and expand the continent via a partnership with Uber Mexico. FlexClub’s company manages the rental income, investment, and disbursement of funds to all parties and also handles insurance, maintenance, and upkeep of the cars. Hence, rising investment is projected to propel the market growth.

Rising initiatives by major players for promoting the car rental services in the region is expected to foster the market growth over the forecast period. For instance, in January 2016, Avis Budget Group, Inc. entered into a partnership with JetBlue and JetBlue’s TrueBlue loyalty rewards program. The partnership offers Avis Budget Group to promote its Avis Car Rental, Budget Car Rental and Payless Car Rental brands, products, and services as well as money-saving offers directly to JetBlue customers and TrueBlue members.

Car rental business is highly seasonal in nature and this can interrupt the travel patterns. Moreover, operating expenses such as rent and insurance is fixed and these charges cannot be reduced during seasons. Also, sometimes sales of insurance are carried out by brokers, and this could reduce the profitability of car rental companies. This the factor is also projected to hamper the market growth of car rental in Mexico.

Key features of the study:

  • This report provides in-depth analysis of car rental market and provides market size (US$ Million) and Cumulative Annual Growth Rate (CAGR %) for the forecast period (2019 – 2027), considering 2018 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, key developments, trends, regional outlook, and competitive strategy adopted by key players
  • It profiles key players in the Mexico car rental market based on the following parameters – company overview, financial performance, service offerings, market presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study includes The Hertz Corporation, Sixt SE, Avis Budget Group Inc., Alamo, National Car Rental, Europcar Group S.A., MEX Rent a Car, Budget Rent A Car System, Inc., Fox Rent A Car, and Thrifty Car Rental, Inc. among others.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decision regarding their future service launches, technology up-gradation, market expansion, and marketing tactics
  • The Mexico Car Rental market report caters to various stakeholders in this industry including investors, suppliers, Car Rental manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the Car Rental market

Detailed Segmentation:

  • Mexico Car Rental Market, By Car Type:
    • Economy Car
    • Compact Car
    • Intermediate Car
    • Premium Car
    • Luxury Car
    • Sports Utility Vehicle
    • Others (includes people carrier, pick-up trucks etc.)
  • Mexico Car Rental Market, By Booking type:
    • Offline Access
    • Mobile Application
    • Other Internet Access
  • Mexico Car Rental Market, By City:
    • Monterrey
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access   
    • Cancun
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access
    • Mexico City 
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access
    • Guadalajara
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access
    • Los Cabos
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access
    • Riviera Maya
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access
    • Riviera Maya
      • By Car Type:
        • Economy Car
        • Compact Car
        • Intermediate Car
        • Premium Car
        • Luxury Car
        • Sports Utility Vehicle
        • Others
      • By Booking Type:
        • Offline Access
        • Mobile Application
        • Other Internet Access
  • Company Profiles
    • The Hertz Corporation*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Sixt SE
    • Avis Budget Group Inc.
    • Alamo
    • National Car Rental
    • Europcar Group S.A.
    • MEX Rent a Car
    • Budget Rent A Car System, Inc.
    • Fox Rent A Car
    • Thrifty Car Rental, Inc.

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objective and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By City
      • Market Snippet, By Car Type
      • Market Snippet, By Booking Type
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
        • Supply Side Drivers
        • Demand Side Drivers
        • Economic Drivers
      • Restraints
      • Market Opportunities
      • Industry Trend
      • Mergers and Acquisitions
      • Key Developments
      • Promotion and Marketing Initiatives
    • Cost Tier Down Analysis
  4. Mexico Car Rental Market, By City, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Monterrey
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Cancun
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Mexico City
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Guadalajara
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Los Cabos
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Riviera Maya
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Puerto Vallarta
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
  5. Mexico Car Rental Market, By Car Type, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Economy Car
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Compact Car
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Intermediate Car
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Premium car
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Luxury Car
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • SUV’s
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
  6. Mexico Car Rental Market, By Booking Type, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Offline Access
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Mobile Application
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
    • Other Internet Access
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2019 - 2027, (US$ Million)
  7. Competitive Landscape
    • Heat Map Analysis
    • Market Share Analysis (3x3 Matrix)
    • Company Profiles
      • The Hertz Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Sixt SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Avis Budget Group Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Alamo
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • National Car Rental
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Europcar Group S.A.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • MEX Rent a Car
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Budget Rent A Car System, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Fox Rent A Car
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Thrifty Car Rental, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

* Brows 40 market data tables* and 25 figures* on "Car Rental Market” - Mexico forecast to 2027

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users