The Mexico car rental market comprises services provided by various car rental agencies and operators to individuals and corporate customers for short-term usage. Car rentals cater to business and leisure trips made by locals as well as international tourists. With increasing investments in the travel and tourism sector as well as rising business activities, the demand for car rentals is growing in the country. Car rentals provide customers with diverse vehicle models and classes suitable for varied usage and at affordable rates. The convenient rental procedures allow customers to opt for self-drive options and make travel economical.
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 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the Mexico car rental market is the increasing popularity of online booking portals. Customers now prefer reserving rental cars via online platforms due to advantages such as round-the-clock availability, easy comparison of rental prices, and opting for desired vehicles and add-ons like insurance. Major car rental companies like Hertz, Avis, and Enterprise operate online booking websites with apps for seamless reservations from any location at any time. This modern trend of online reservations has significantly benefitted customers and boosted the overall car rental industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Mexico Car Rental Market is moderate as the market is moderately fragmented with presence of global and local players. The capital requirements and economies of scale create barriers for new companies.
Bargaining power of buyers: The bargaining power of buyers in the Mexico Car Rental Market is high due to availability of different players providing car rental services. Buyers can easily switch between operators based on offerings.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are few raw material suppliers and switching costs for operators are low.
Threat of new substitutes: The threat of new substitutes is low as ride-hailing and car-sharing startups act as complements rather than direct substitutes.
Competitive rivalry: The competitive rivalry in the Mexico Car Rental Market is high owing to presence of global players and local operators competing on pricing and service quality.
Key Takeaways
The Global Mexico Car Rental Market Size is expected to witness high growth over the forecast period of 2023 to 2030. 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 4.4% over the forecast period 2023 to 2030.
The Mexico Car Rental Market in North America region is expected to grow at a fastest pace during the forecast period owing to presence of major players and availability of advanced car rental services.
Key players
Key players operating in the Mexico Car Rental Market are Cipla Ltd, Merck & Co., Inc., F. Hoffmann-La Roche Ltd., GlaxoSmithKline plc, Bayer AG, Amgen Inc., Novartis AG, Sanofi S.A., Pfizer Inc., Johnson & Johnson. Cipla Ltd and Merck & Co., Inc capture majority market share and focusing on expanding service offerings.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it