Brazil Vehicle Rental Market - Overview and Forecast (2015 - 2020)
A rise in domestic & inbound tourism compounded by the increased passenger flow at airports and infrastructure improvements are some of the major underlying factors affecting the growth of the Brazil Vehicle Rental Market at a CAGR of X%. The market registered a revenue worth of more than $83 million in 2014. Convenient access to long-term financing has also been an impetus, driving the growth of the vehicle rental market historically, making the market competitive. However, the market is expected to register a weaker growth rate, owing to the present economic instability (primarily inflation), coupled with the fall in the demand dynamics of the market. Vehicle rental services in the country has become significantly competitive, with the international players seeking the market advantage by providing a huge array of offerings, like huge discount rates for tourists especially through the online access system. For instance, Alamo-Rent-a-Car (a subsidiary of Enterprise Holdings) provides a special 20% discount for any car rental services in Latin America, when booked online. Alamo also provides special car rental rates and benefits to the federal government employees and military personnel for official business travel as well as for off-duty leisure travel. The country has provided a huge growth potential in the vehicle rental market over the years, making the service providers seek for diverse product portfolios and service offerings to tap the length and breadth of the market.
Brazil is one of the largest countries in the world and is surrounded by almost all countries in the South American continent. The country has been home to various historical sites including opera house in Manaus, colonial towns and churches along with the numerous cultural celebrations (especially the Rio-de-Janeiro carnival), which are grandly celebrated, making the country as one of the preferred destination for inbound tourism in Latin America. In addition, the Football world cup in 2014 provided a huge impetus in the growth rate of the tourism vehicle rental market to a significant extent. Pharmaceuticals, food and beverage, consulting, and financial services are traditionally the major customer segment of the business fleet management services.
The fleet market in Brazil had undergone certain challenges in the recent past due to the tentative economic landscape in the country. The strategy of the Government in 2013 in stimulating consumption through a tax reduction temporarily caused a significant extent of depreciation in the value of pre-owned cars, making purchase of new vehicles easier. It created a strong impact in the fleet management business and car rental markets, where the fleet management companies witnessed their assets losing value, forcing them to reduce their charges for the vehicle.
The report classifies and defines the Brazil vehicle rental market size, in terms of units. It provides a comprehensive analysis and insights into car rental service segments. The market is segmented on the basis of Booking type – Offline Access, Mobile Application, Other Online Access ; Vehicle Type- Economy, Premium and Luxury, SUV, Hybrid and Electric Vehicles, and Others; Application purpose– Leisure/Tourism, Business, and others; Usage- Self Driven, Fleet-Operator Driven, Third-Party Driven Vehicles, and Others; End Users- Fleet Operators, Tour Operators, Governments. The report showcases potential growth opportunities in the forecast period, while also reviewing the rental market drivers, restraints, opportunities, and market trends in Brazil vehicle rental market dynamics in the country, competitive landscape, and other key aspects with respect to vehicle rental services. The report also covers qualitative aspects such as value chain analysis, technological roadmap, and Porter’s five force analysis for the market. The key players in this market have also been identified and profiled. Alamo-Rent-a-car, Hertz Corporation, Sixt SE, Movida Rent-a-car are some of the major vendors profiled for the market.
WHAT THE REPORT OFFERS
Market Definition and Scope along with identification of key drivers and restraints for each segment in the market. Market analysis with specific studies and theoretical analysis on the car rental market for the country Identification of factors that has been instrumental in changing the market dynamics, prospective opportunities for each segments and identification of key factors, influencing the market. Extensively researched competitive landscape segment with the market dynamics for each major player across the country. Identification and analysis of the macro and micro factors that affect the growth of the industry for the states.
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