The global Mexico Car Rental Market is estimated to be valued at US$ 1220.02 Mn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Mexico car rental market provides renting vehicles such as economy cars, luxury cars, SUVs, and other vehicles to customers for short-term periods. Car rental services offer flexibility and convenience to travelers and tourists visiting Mexico. Rental cars are mainly used for temporary transportation purposes such as business trips, leisure travel, and vacations within Mexico. The growing vehicle ownership and tourism industry in Mexico is contributing to the demand for car rental services in the country.
Market key trends:
One of the key trends in the Mexico car rental market is the growing preference for online bookings. Customers are increasingly opting for booking rental cars online due to the convenience offered. Online booking platforms allow customers to compare rental rates, view vehicle images, add additional services, and complete bookings from any location. This has improved the customer experience and boosted the online presence of major car rental companies. Furthermore, rising economic growth and increasing disposable income in Mexico are encouraging domestic tourism which is further fueling the demand for rental cars within the country. Expanding transportation infrastructure including airports and highways is also supporting the growth of Mexico car rental market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Mexico Car Rental Market is low since there are high costs involved in establishing the business infrastructure and cars fleet, branding and marketing.
Bargaining power of buyers: The bargaining power of buyers is high since there are many established players offering substitutable products and services in the market. Buyers can easily switch between suppliers based on price and offers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many vehicle manufacturers and leasing companies supplying cars to rental operators. However, switching costs for changing suppliers are relatively low.
Threat of new substitutes: The threat of substitutes is moderate as transportation options like taxis, ride-hailing and rail provide alternatives. However, car rentals offer flexibility of self-drive.
Competitive rivalry: The competitive rivalry in the market is high due to presence of many national and international brands.
Key Takeaways
Global Mexico Car Rental Market Demand is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing international tourism and business travel.
Regional analysis: Mexico dominates car rental market in Latin America accounting for over 45% revenue share in 2022. Mexico City is the largest regional car rental market in the country.
Key players: Key players operating in the Mexico Car Rental Market are 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., THE HERTZ CORPORATION, Sixt SE, Avis Budget Group Inc., and Alamo. National Car Rental and EUROPCAR GROUP S.A accounted for nearly 30% of the overall market revenue in 2021.
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