Companies in this industry rent and lease passenger cars, trucks, and trailers. Major companies include AMERCO (parent of U-Haul International), Avis Budget Group, Enterprise Holdings, Hertz Global Holdings, and Ryder (all based in the US), along with China Auto Rental (China), Europcar (France), LeasePlan (the Netherlands), and Sixt (Germany).
The global car rental market is expected to exceed $100 billion by 2022, according to Grand View Research. China is seen as a key source of growth. Car rentals are growing in popularity in China's big cities, with demand being driven by better living standards and limits on ownership of private cars. Automobile rental in China could grow to more than $10 billion in sales by 2018, according to Roland Berger Strategy Consultants.
The auto rental and leasing industry in the US includes about 14,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $52 billion.
Demand is driven by business and leisure travel, as well as by the housing market. The profitability of individual companies depends on efficient operations and the ability to finance inventory. Big companies have economies of scale in acquiring vehicles and customers. Small companies can compete effectively by providing better service, alternative products, or lower prices. The US industry is highly concentrated: the 50 largest companies generate more than 80% of revenue.
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Major services include the rental and leasing of passenger cars, which accounts for about...