Brazil Car Rental Market Report and Forecast 2025-2034

Brazil Car Rental Market Outlook

The Brazil car rental market size was valued at USD 2.23 billion in 2023. The market is further projected to grow at a CAGR of 7.8% between 2024 and 2032, reaching a value of USD 4.40 billion by 2032.

Key Takeaways

• The car rental industry in Brazil is experiencing growth, with the 18th Brazil Car Rental Forum marking a historic high in the industry. The event featured over 1,500 attendees and discussions on vehicle rental activities in Brazil and globally.

• As per industry reports, csoncerns about lower emissions have led to an increased demand for car rental options.

• Key players in the market are SIMPAR S.A. (Movida), Enterprise Holdings, Inc., Localiza Rent a Car S/A, Europcar International S.A.S.U., and Avis Rent a Car System LLC.

The Brazilian government is taking initiatives to boost tourism, making it one of the top destinations for both domestic and international travellers. This has led to a rise in demand for car rental services, particularly in major cities and tourist spots. Federal Government has relaxed visa procedures for countries like the United States, Japan, Canada, and Australia, leading to a 25% increase in tourists from these countries.

Secondly, the increasing internet penetration and the availability of high-speed internet at affordable prices have motivated rental players to shift their business models to online platforms. Online booking has become the most popular option for clients, offering real-time monitoring of rental vehicle operation, performance, and maintenance. Thirdly, vehicle rental companies are diversifying their fleet offerings with electric and hybrid models, which has led to Brazil car rental market development.

Moreover, key players like Localiza, Movida, Unidas, Hertz Corporation, and others are expanding their services, investing in fleet management companies, and entering partnerships to strengthen their market presence. For example, Brookfield Asset Management invested in a Brazil-based corporate rental and fleet management company, Kovi invested in expanding car rental services, and CalAmp partnered with Localiza to enhance the car rental experience.

The Brazil car rental market growth can be attributed to the flexibility in rental durations for leisure travellers, along with the focus on corporate mobility. Many platforms offer hourly, daily, or monthly online rental services, catering to travellers who need short-term vehicle rentals at tourist destinations.

The rise in business travel and corporate mobility is also driving demand for car rentals in Brazil. Companies often opt for rental vehicles for their employees, providing cost-effective and flexible transportation solutions for business-related purposes.

Market Segmentation

Brazil Car Rental Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Booking Type

• Offline Access

• Online Access

Market Breakup by Application Type

• Leisure/Tourism

• Business

Market Breakup by Vehicle Type

• Luxury/Premium Cars

• Economy/Budget Cars

• SUVs

• MUVs

Market Breakup by Region

• São Paulo

• Minas Gerais

• Rio de Janeiro

• Bahia 

• Rio Grande do Sul

Competitive Landscape

Market players are focusing on strategies such as expanding their services, investing in fleet management companies, and entering partnerships to strengthen their market presence.

• SIMPAR S.A. (Movida)

• Enterprise Holdings, Inc.

• Localiza Rent a Car S/A

• Europcar International S.A.S.U.

• Avis Rent a Car System LLC

• UNIDAS LOCADORA SA

• Foco Aluguel De Carros S/A

• Others

Key Highlights of the Report