The Rising growth of Mexico Car Rental Market
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:
The Mexico Car Rental Market offers various vehicles including economy cars, compact cars, luxury cars, SUVs, and others for short-term and long-term basis. These vehicles come with basic insurance coverage and are economical means of transportation for both leisure and business travel.
Market key trends:
The Mexico car rental market has been witnessing high adoption of mobility services like car sharing and ride-hailing over the past few years. Services like Uber, DiDi, and Beat have gained immense popularity in the country. The growing adoption of these mobility services has been limiting the growth of the conventional car rental market. However, major car rental companies are partnering with ride-hailing operators and introducing innovative business models like rentals by the hour to counter this threat. Introduction of advanced technologies focusing on digitalization and automation is another key trend being observed in the Mexico car rental market.
SWOT Analysis
Strength: Established distribution network and brand presence of major players across key cities of Mexico.
Weakness: Increased popularity of emerging shared mobility solutions restricting the growth of conventional rental services.
Opportunity: Rising tourism industry in Mexico and growing business travel segment presents an opportunity to target new customer base.
Threats: Stringent emission regulations imposed by the government on diesel vehicles may impact the fleet of rental companies.
Key Takeaways
Global Mexico Car Rental Market Demand was valued at US$ 1220.02 Mn in 2023 and is expected to reach US$ 2117.90 Mn by 2030, expanding at a CAGR of 10% during the forecast period. The rising number of international tourist arrivals in Mexico along with increased domestic business travel is driving the growth of the car rental market. Regionally, Western Mexico dominated the market in 2023 with over 35% share owing to the presence of key tourist destinations like Cancun, Playa del Carmen, Los Cabos etc. in the region. Key players 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. These players are focusing on enhancing customer experience through technological innovations and introduction of flexible rental packages.
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