Mexico Car Rental Market Overview, 2028

Mexico Car Rental Market Overview, 2028

A credit card, driver's license, and passport are required to rent a car in Mexico. The maximum age is 75 years, and drivers under the age of 25 are subject to surcharges. The concept is gaining traction as the general population's desire for flexibility and convenience grows. The growing presence of international and domestic tourists is propelling Mexico's car rental market forward. MUVs, on the other hand, are expected to see significant growth due to the country's emerging trend of carpooling and car-sharing services. Online segment is expected to grow at a reasonable rate during the forecast period. The rising number of smart phone users in the country, combined with the ease of booking a car from wherever the customer is, may be attributed to the growth. Airport transportation is expected to grow moderately as a result of the country's increasing tourist influx and rising air traffic. Renting a car in Mexico used to be more expensive than renting in the United States, but in recent years, the Mexican market has become much more competitive and prices have fallen, making car rental surprisingly affordable.

According to the research report, Mexico Car Rental Market Overview, 2028, published by Bonafide Research, the market is anticipated to add USD 1.16 billion by the end of 2028. Economy cars had the largest market share in the car rental market. One of the most important factors to consider when renting a car is its fuel economy as it has an effect on operating costs. Because of the low maintenance and procurement costs, most market players prefer economy cars for car rental services. Furthermore, economy cars are compact in nature and provide adequate comfort to the passengers. A significant increase in the number of people travelling for business and pleasure across the country is fueling demand for car rental services and propelling the industry's growth. Employees travelling to Mexico for business purposes increase demand for Mexico car rentals to familiarise themselves with locations and business details. Rising internet penetration across developing as well as developed countries has further helped companies in the market capture a larger customer base with the help of dedicated mobile apps for the convenience of customers. The availability of a wider range of car types for rental purposes, such as SUVs and MUVs, boosts demand for Mexico car rentals. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the Mexico car rental market.

The rising number of manufacturing units in Mexico and the country's improving living standards are creating more jobs, resulting in more disposable income. This has resulted in an increase in the number of leisure travellers travelling to leisure destinations, which is driving up demand for car rental services. As a result, the market for car rentals in Mexico is expected to grow. Various economic factors, such as the level of economic activity in the industry in which the player operates, are likely to have an impact on the business. Furthermore, a decrease in economic activity can lead to a decrease in both business and leisure travel, as well as a decrease in the volume of car rental services. Furthermore, due to competitive pressure, car rental services may reduce their rates, which is expected to impede market growth. Furthermore, the country's strong presence of major players such as Hertz, Avis, Alamo, Budget, Thrifty, and others is expected to boost market growth.

Due to the increasing implementation of strict emission regulations in order to reduce pollution, transportation companies are encouraging the addition of electric and hybrid vehicles to their services. However, demand for these vehicles in Mexico is currently low, but it is expected to rise significantly over the forecast timeframe. As a result, the increasing adoption of electric and hybrid vehicles is expected to provide enormous growth opportunities for the car rental market. For instance, New Mexico Rental Car officially opened its doors on July 19, 2021. The company offers new and nearly new SUVs and cars for daily, weekly, and/or long-term rental. The company's services are aimed at customers in the Albuquerque metro area and the surrounding Middle Rio Grande Valley. Furthermore, increased adoption of electric vehicles (EVs) or favourable government electrification initiatives are expected to boost growth in the Mexican car rental market. For instance, in February 2022, Grupo Guepardo, which represents Budget Rent-A-Car in Mexico, signed a commercial alliance with JAC, a Chinese automaker. Grupo GuepardoH will provide a fleet of City Cars for Budget, including full-electric versions of its JAC E10X, as part of the alliance. It will be the first company in Mexico with a fleet of fully electric vehicles.

Considered in this report
• Geography: Mexico
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Mexico Car Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By car Type
• Luxury car
• Executive car
• Economy car
• Sports utility vehicle (SUV) car
• Multi utility vehicle (MUV) car

By application Type
• Leisure/Tourism
• Business

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to car rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.