The 9 Largest Car Rental Companies in the World – Yahoo Finance | CarTailz

In this article we take a look at the largest car rental companies in the world. To skip our detailed analysis, you can go watch directly The 5 largest car rental companies in the world.

The car is one of the most important means of transportation worldwide and in some parts of the world the only real means of transportation. In developing countries, public transport and infrastructure is often not as extensive as in a developed country. The vehicles used are often run down and times incredibly inconsistent, making it almost impossible to fully rely on public transport. Also, many areas may not even have public transport, meaning you’ll either have to walk or take a taxi regardless. Another point to consider is that in developing countries the population density is often quite high and the public transport provided is insufficient to service the entire population, which can result in public transport being congested, inconvenient and unreliable.

That’s one of the reasons why car rental is so incredibly successful. Even some of the pioneers in the industry started out providing car rentals in the event that the person’s own vehicle was in an accident or became unusable for some reason before concentrating on providing car rentals for travelers and business people. For example, even if you are traveling in a very well developed country like Iceland, most of the places in Iceland to discover are quite far apart with nothing but a rugged landscape in between. This necessitates the use of rental cars to be able to do justice to the country’s attractions at one’s leisure.

largest car rental companies in the world

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According to Fortune Business Insights, the value of the global rental market will be around US$68.84 billion in 2021, growing to US$82.54 billion in 2022 and expected to reach US$137.25 billion by 2029. which translates to a CAGR of 7.5% from 2021 to 2029. It is also important to remember that the Covid-19 pandemic has absolutely decimated the travel industry and also greatly impacted the global rental market. In fact, the rental car market is down 31% in 2020 compared to 2019 and has not returned to pre-Covid levels even now that the pandemic is easing somewhat.

Perhaps the largest area where the rental car market operates is in airports. According to the International Civil Aviation Authority, there were 2,307 million fewer passengers in 2020 compared to 2019. These passengers make up a large percentage of the car rental industry’s total consumers and, of course, the loss has been devastating. In the United States, the number of cars rented in 2020 was 17.3 million compared to 44.5 million in 2019, a significant decrease. This led to many car rental companies selling parts of their fleet as operating costs were too high and the drop in sales made it impossible to keep the entire fleet. It is important to be aware of the impact of the pandemic, even if it may not be having the same impact now as it was before, as it will impact the industry’s growth and recovery for years to come.

To improve their business, car rental companies need to focus on customer retention, particularly those who travel frequently for business or pleasure, as this demographic represents the best opportunity for customer retention. Many companies are improving their customer service by providing better technology, a transparent process, speeding up the booking process, and most importantly, a faster response rate for customers. A key example of this is Avis Budget Group (CAR), one of the largest car rental companies in the world, which has partnered with Ford Commercial to improve efficiency and simplify the rental process for customers.

If you’ve been in the market to buy or sell a car, you know that car prices are going through the roof these days. People are paying premium amounts to buy cars from those who have already had their units delivered because, due to global supply chain issues and a lack of available parts needed to manufacture, people who have booked their vehicles are still months up have to wait for delivery. Dealers offer incentives to customers who have leased cars from them to get the car back and sell it at a premium. This has discouraged many potential customers from buying their own car, and higher maintenance costs and reduced and expensive parking spaces have increased demand for rental cars.

It is also interesting to note that the vast majority of people who rent a car prefer to rent an economy car, which is a compact, fuel-efficient car and therefore offers sufficient comfort while being easy on the wallet. The small cars take over 36% of the total market share, followed by the full-size car segment, which consists of vehicles with premium options but still isn’t too expensive. Luxury cars follow, which are premium models from premium brands, and with the rising middle class in India and China, the demand for luxury cars is steadily increasing.

Unsurprisingly, North America is the largest rental car market, valued at $23.39 billion. There are several reasons for this, one of which is that people in North America generally have higher disposable incomes and can afford to rent cars. If we look at the United States in particular, many cities are built for cars and therefore walkability and public transport are severely affected, in contrast to, say, Europe, where most countries and cities have placed great emphasis on the availability and reliability of the public transport and thus the demand for rental vehicles may not be as high.

To determine the largest car rental companies in the world, we first consulted the companies named by Fortune Business Insights as the largest players in the industry. We then checked the annual reports and official websites of these companies to determine their fleet size, revenue, and headcount. Where revenue was in a foreign currency, we have converted it to USD to ensure data remains consistent across companies. Finally, we weighted turnover and fleet each with 40% and the number of employees with 20%. This has allowed us to create accurate rankings for each company. So without further ado, let’s take a look at the companies you will most likely be renting from on your next trips, starting with number 9:

9. Toyota rental car

Total Revenue Last Fiscal Year (in millions): N/A

Total number of vehicles in fleet: N/A

Total number of employees: N/A

Although mentioned in Fortune Business Insights, separate statistics are not available for Toyota Rent a Car, which is operated by Toyota Motor Corporation (NYSE: TM). We even checked Toyota Motor Corporation’s (NYSE:TM) annual report but couldn’t find separate data on their rental business, so we’ve automatically given it last place.

8. Auto Inc.

Total Revenue Last Fiscal Year (in millions): $525.7

Total number of vehicles in the fleet: 109,688

Total number of employees: 5,132

Car Inc. is the largest car rental company in China and claims to have a fleet larger than the next 19 car rental companies in China combined, with offices in 70 cities across the country. The company offers an on-demand chauffeur-driven service in more than 60 cities.

7. Local Car Rental

Total Revenue Last Fiscal Year (in millions): $1,666

Total number of vehicles in the fleet: 219,406

Total number of employees: 7,582

Localiza Rent a Car is a Brazilian company and the largest car rental company in Latin America. The company has nearly 600 offices in 9 countries and has offices in Chile, Colombia, Uruguay, Paraguay, Ecuador and Argentina. The company currently has several brands in its fleet, including Volkswagen, Chevrolet, Renault and Fiat.

6. Lotte Rental Co.Ltd.

Total Revenue Last Fiscal Year (in millions): $1,744

Total number of vehicles in the fleet: 240,000

Total number of employees: 1,920

Lotte Rental is a South Korean company that has made great strides in the car rental industry. Lotte Rental is Asia’s largest car rental company.

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Disclosure: None. The 9 Largest Car Rental Companies in the World was originally published by Insider Monkey.

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