by The Mexico car rental market has witnessed significant growth in recent times on account of rising tourism activities in the country. Car rentals offer tourists the freedom and flexibility to explore attractive tourist destinations in Mexico at their own pace. Rising numbers of domestic and international tourists travelling to Mexico each year has spurred the demand for rental vehicles across key cities. The market provides convenient car options for both leisure and business travels with a wide range of vehicle models available on daily, weekly or monthly rental basis.
The Global Mexico Car Rental Market is estimated to be valued at US$ 1405.47 Mn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.
Car rentals have emerged as a popular and cost-effective mode of transportation for tourists. They offer an affordable alternative to transportation services like taxis. Rental cars are an indispensable part of independent travel plans, allowing visitors to cover multiple places conveniently without being dependent on public transport. Additionally, rental vehicles provide tourists with privacy and autonomy during their trip. The growing application of online booking platforms has further facilitated the car rental process, attracting more customers. Mexico Car Rental Market Demand have expanded their fleet sizes to meet the rising demand.
Key Takeaways
Key players operating in the Mexico car rental market are Eversman Corporation, ABI Equipment, TEXOMA Augers, Agritech, Morris Industries, G P Industries, Tricon Manufacturing, Agri Drill, Avant Tecno, Caterpillar, Paladin Power, Auger Torque, Little Beaver, Danuser, Blue Diamond Attachments, Erskine Attachments, Macfarlane Augers, Terex, Bobcat, Dando Drilling International.
There is significant growth in the number of domestic and international tourists arriving in Mexico each year. This has boosted the demand for car rentals across popular Mexican destinations. Consumers prefer renting vehicles as they provide flexibility and autonomy during travel.
Mexico Car Rental Market companies are expanding their international presence and fleet sizes in Mexico to tap the potential of the growing tourism industry. Affordable rental rates and online bookings are further attracting customers amid rising mobility needs.
Market Key Trends
One of the key trends witnessed in the Mexico car rental market is the growing popularity of online bookings. Earlier reservations were largely made via phone calls or by visiting rental counters. However, the digitization wave has seen customers increasingly opting for the convenience of digital platforms. This has streamlined the booking and payment process. Recognizing this trend, leading rental companies are bolstering their online presence with user-friendly websites and mobile apps. The shift towards online channels is expected to accelerate further over the coming years.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements for large fleet sizes to match incumbent operators. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like taxi services and public transportation. Bargaining power of suppliers: Car rental operators purchase cars from automakers who have greater bargaining power as there are few alternatives for fleet vehicles. Threat of new substitutes: Substitution threat comes from ride hailing and car sharing services which offer flexibility without long term commitments. Competitive rivalry: The market is dominated by few international operators like Hertz, Avis Budget, and Europcar who compete intensely on availability, price and promotions.
Geographical regions of concentration
Most of the car rental market value is concentrated in tourist hubs like Mexico City, Cancun and Los Cabos which see heavy inflow of international visitors. These regions account for over 60% of the national car rental fleet.
Fastest growing region
The Yucatan Peninsula region comprising Merida, Campeche and surrounding areas is witnessing fastest growth in car rental demand. Increased investments in infrastructure and tourism promotion are attracting more domestic and international travelers to this relatively underserved market. Additional airport locations and expanding fleet sizes by rental operators are expected to boost revenue from the Yucatan region at over 10% annually during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
