MEXICO CAR RENTAL MARKET ANALYSIS

Mexico Car Rental MarketSize and Trends

Mexico Car Rental Market size was valued at US$ 1,108.1 Million in 2022, exhibiting a compound annual growth rate (CAGR) of 10.1% from 2023 to 2030. Car rental companies offer their service to people who do not want to own a car but need a temporary vehicle. The company also rents vans, trucks, motorcycles, and scooters to meet the needs of the self-moving industry. Alongside the essential rental help, vehicle rental offices likewise provide additional services such as Global Positioning Systems (GPS) route frameworks, insurance, cell phone services, entertainment systems and compact Wi-Fi. On November 23 2022, according to UNWTO (United Nations World Tourism Organization), between January and September, an estimated 700 million tourists traveled internationally, which is more than twice as many (+133%) as the number that was recorded for the same time period in 2021. In accordance with UNWTO scenarios, this represents 63% of 2019 levels and places the industry on track to reach 65% of its pre-pandemic levels this year.

Results were boosted areas, due to lifting of restrictions in various destinations after the pandemic.

During the pandemic, a lot of car rental companies started using Kiosks and Apps to make renting a car easier, which can save a lot of time. Car rental companies quickly switched to a contactless system because it makes customers feel safer and makes it easier for them to run their businesses in these tough times. In general, in order to attract and keep customers in a competitive market, car rental companies must remain attentive to customer preferences, provide a high level of service, and be flexible.

The Mexico Car Rental Market is estimated to be valued at US$ 1,108.1 Million in 2022 and expected to reach US$ 2,388.8 Million by 2030, exhibiting a CAGR of 10.1% between 2023 and 2030.

Mexico Car Rental Market- Segmentation

Figure 1. Mexico Car Rental Market Value (US$ Mn), By Car Type, 2022 & 2030

Among car type, SUVs segment is expected to be the fastest growing segment over the forecast period. This segment was valued at US$ 657.66 Mn in 2022 and is expected to generate US$ 1,494.46 Mn by 2030. The segment is expected to exhibit a CAGR of 9.7% over the forecast period. The term "sports utility vehicle" refers to an SUV in the automotive industry. It is a kind of car with good ground clearance that is high off the ground and usually has four wheels.

The driving factor is that the customers who rent SUVs have more space for both people and cargo is the driving factor of this kind. Because a seven-seat SUV has ample space for a large group, its owners can transport groceries, luggage, and sporting and recreational equipment on road trips. Market players such as The Hertz Organization, Sixt SE, Avis Spending plan Gathering Inc., Alamo, provides SUV's vehicles on rent in Mexico.