Brazil Vehicle Rental Market - Overview and Forecasts (2020 - 2025)

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Brazil Vehicle Rental Market

The Brazil vehicle rental market was valued at USD 4.68 million in 2017, projecting a CAGR of 4.54%, during the forecast period 2018-2023.

The future of the Brazilian vehicle rental industry looks very promising with opportunities in the on-airport market. The major contributing factors for this market are the rising tourism industry, increasing globalization of corporate operations, spread of the internet, and increasing income in the region. Rapid urbanization and increased expenditure on travel by domestic tourists within the region are also propelling the market.

Car rental companies in Brazil are subjected to a wide range of federal, state, and municipal regulations, including laws relating to labor rights, social security, consumer protection, and antitrust matters. However, initiatives undertaken by the Government of Brazil, such as improving road infrastructure, are driving the market.


Tourism in Brazil is a growing sector and key to the economy of several regions of the country. The country had 6.36 million visitors in 2016, ranking in terms of the international tourist arrivals as the main destination in South America and second in Latin America after Mexico. Salvador, the second city of tourism after Rio and with a metropolitan area of over 3 million people, is Brazil’s eighth most populous city. Fortaleza is home to another 3.5 million Brazilians and is the fifth largest city with a strong tourist appeal as well as a strong industrial base.

Online travel (booking tickets) continued to gain ground on offline travel sales to residents in 2017, as Brazilians increasingly incorporated the habit of making purchases online, especially given the growing use of the internet for communicating lower-priced offers.

Most of the tourists in Brazil come from Argentina. As of 2016, around 35% came from Europe and 15% from the United States. The most visited destinations in Brazil are Sao Paulo, Rio de Janeiro, and Salvador de Bahia, along with several places all around the coast. Additionally, with the Relaxation in the issuing of visas to tourists from important source markets, such as the United States, Canada, Japan, and Australia, has also propelled the tourism in the country, in turn driving the vehicle rental market.

Brazil vehicle rental companies cater specifically to tourists looking to explore Brazil in their own time, with online and walk-in booking services making vehicle rental more simple, accessible, and efficient, in turn driving the growth of the market. 


  • TThe leisure/tourism segment of the vehicle rental market in Brazil is expected to witness the fastest CAGR of 5.02% during the forecast period.
  • One of the major factors that negatively affected the domestic tourism is the economic instability of the country, coupled with the decline in demand dynamics of the market owing to the inflation. The Brazilian GDP sharply declined from USD 2,456.04 billion in 2014 to USD 1,801.47 billion in 2015. Although it is steadily growing and registered USD 2,080.91 billion in 2017, and is still in a recovery phase and far from pre-2015 levels.
  • The sharp decrease in domestic tourism has, in turn, affected the vehicle rental industry negatively due to the drop in the overall number of tourists opting for rentals. The growth of the leisure/tourism vehicle rental segment is dependent on the amount of tourist influx from both international and domestic tourism.
  • The Brazilian government recently decreased the number of requirements applicable to foreign drivers. For instance, foreign tourists are now eligible to drive throughout the country with an only passport and their respective country’s driver license. Consequently, helping the country's vehicle rental market.
  • The rise in domestic tourism is one of the key factor expected to drive the vehicle rental market in the country. According to the Central Bank of Brazil, an increase of about 45% in the sales of holiday packages to Rio de Janeiro and Rio Grande do Norte’s capital, Natal was observed in the last five years.
  • The average age of the vehicles owned by operators for leisure/tourism purposes is around 18-24 months, more specifically for large operators owning more than 25 cars.
  • The Brazilian leisure/tourism vehicle rental segment is on a steady growth path owing to the current stable economy and rise in tourism industry within the country.

Key Developments

  • December 2017 - Brazilian car firm Locamerica announced that it has tied up with its rival company Unidas SA, in order to create RENT3, which is Brazil’s No.2 car rental firm.

Competitive Landscape

  • The Brazilian vehicle rental market is majorly dominated by the local players, with 64% of the market share divided among local players. Localiza is the undisputed market leader, followed by Unidas.
  • The major companies in the Brazilian Fleet Management market are Unidas, Localiza, Locamerica, Ouro Verde, Avis, Movida, and Leaseplan. Other competitors include Arval, ALD, DaVinci, Locaralpha, Lets, and Master Car Rental, among others.

Report Scope



Base Year for Estimation


Forecast Period

2018 – 2023

Market Representation

Revenue in USD million and CAGR from 2018 – 2023

Report Coverage

Revenue forecast, market share analysis, and market dynamics

Reasons to Purchase the Report –

  • To study the current and future market outlook in the country
  • Analyzing various perspectives of the market with the help of Porter’s five forces analysis
  • Detailed analysis of the segment that is expected to dominate the market
  • Identify the latest developments, market shares and strategies employed by the major market players.
  • 3 months analyst support along with the Market Estimate sheet in excel.

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