Automobile Rental & Leasing Industry Profile

Companies in this industry rent and lease passenger cars, trucks, and trailers. Major companies include AMERCO (parent of U-Haul International), Avis Budget Group, Enterprise Holdings, Hertz Global Holdings, and Ryder (all based in the US), along with China Auto Rental (China), Europcar (France), LeasePlan (the Netherlands), and Sixt (Germany).

The global car rental market is expected to reach nearly $120 billion by 2024, according to Grand View Research. China is seen as a key source of growth. Car rentals are growing in popularity in China's big cities, with demand being driven by better living standards, business rentals, and limits on ownership of private cars.

The auto rental and leasing industry in the US includes about 15,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $60 billion.

COMPETITIVE LANDSCAPE

Demand is driven by business and leisure travel, as well as by the housing market. The profitability of individual companies depends on efficient operations and the ability to finance inventory. Big companies have economies of scale in acquiring vehicles and customers. Small companies can compete effectively by providing better service, alternative products, or lower prices. The US industry is highly concentrated: the 50 largest companies generate more than 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include the rental and leasing of passenger cars, which accounts for about 65% of industry revenue, and the rental and leasing of trucks, trailers, and ...