The year 2020 was marked by the COVID-19 pandemic spreading throughout the Brazilian territory, with measures to fight the virus concentrated at state level, with little effort from the federal government to centralise strategies in order to tackle the pandemic. In this context, the pandemic evolved rapidly in the country, which was soon included by several countries in their lists of international destinations with severe travel restrictions.
As car manufacturers struggle to catch up on production, given their low productivity levels caused by high production costs, car prices are rising. High electricity prices and shortages in the supply of specific car components have impaired productivity levels in 2021 by disproportionately increasing production costs.
Although travel bans have reduced the sales of car rental outlets located at airports, car rental companies have been able to seek growth through stand-alone stores located on the street, as states included car rental companies in the pool of essential businesses allowed to stay open during COVID-19 lockdowns. Despite the drop in sales generated from inbound tourism, sales via stand-alone outlets will continue to drive the performance of car rental in Brazil, as domestic tourists resort to short-distance local trips to enjoy travel experiences at a time of social distancing.
Unlike what happens in other Latin American countries, such as Mexico, it is uncommon for car rental companies in Brazil to go bankrupt. This reason for this is twofold.
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Understand the latest market trends and future growth opportunities for the Car Rental (Destination) industry in Brazil with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Car rental covers the short-term rental of passenger vehicles for self-drive by both business and leisure users, whether from the airport or downtown locations. Trucks and commercial vans are excluded. Car rental value covers the price of car hire to the consumer. Ancillary revenues are included, such as the hire of baby car seats, GPS navigation systems, optional roadside assistance services and collision and damage waivers. Volume is provided by the number of car hire transactions, fleet size and number of car rental operators. In underdeveloped markets, car rental companies offer chauffeur-driven cars. Most people prefer these options, due to unfamiliarity with the roads. Euromonitor International includes chauffeur-driven cars in car rental, when they concern car rental companies such as Hertz or Avis, which offer a chauffeur-driven service as an additional option. Car rental covers sales to inbound tourists and domestic tourists. i.e. from a destination point of view (also known as point of supply). For example, if a US citizen books a car rental service in France via the US offices of Hertz, the sales are attributed to Hertz France. The same applies for online sales. Car rental excludes long-term leasing, commercial vehicles, trucks and motorbikes and local car sharing schemes.See All of Our Definitions
This report originates from Passport, our Car Rental (Destination) research and analysis database.
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