9 Biggest Car Rental Companies in the World

In this article, we will take a look at the largest car rental companies in the world. To skip our detailed analysis, you can go directly to view 5 largest car rental companies in the world.

Cars are one of the most important forms of transportation around the world, and in some parts of the world, the only real means of travel. In developing countries, public transport and infrastructure are often not as comprehensive as those of developed countries. The vehicles used are often run down, while the timing is incredibly inconsistent, making it almost impossible to rely entirely on public transport. Also, many areas may not even have public transportation services, meaning you’ll either have to walk or take a taxi regardless. Another point to consider here is that often in developing countries, the population density is quite high and the public transport vehicles provided are not enough to satisfy the entire population which can result in congested, inconvenient and unreliable public transport .

This is one of the reasons why the car rental business is so incredibly successful. Even some of the pioneers in the business started with just providing rental cars in case a person’s own vehicle was in an accident or unusable for any reason, before moving on to providing rental cars to travelers and businessmen. For example, even if you travel to a very well-developed country like Iceland, most of the places to explore in Iceland are quite remote in distance, with nothing but solid scenery in between. This requires the use of a rental car to do justice to the sights the country has to offer at your convenience.

the largest car rental companies in the world

the largest car rental companies in the world

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According to Fortune Business Insights, the value of the global rental market is about US$ 68.84 billion in 2021 and is expected to grow to US$ 82.54 billion in 2022 and is expected to reach US$ 137.25 billion by 2029. representing a CAGR of 7.5% from 2021 to 2029. It is also important to keep in mind that the Covid-19 pandemic has absolutely decimated the tourism industry, which has also greatly affected the global rental market. In fact, the car rental market shrank by 31% in 2020 compared to 2019 and even now, with the pandemic somewhat subsiding, has not reached pre-Covid levels.

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Perhaps the biggest area in which the car rental market operates is airports. According to the International Civil Aviation Authority, there were 2.307 million fewer passengers in 2020 compared to 2019. These travelers make up a large percentage of the car rental industry’s total consumers, and the loss has, of course, been devastating. In the US, the number of rental cars in 2020 was 17.3 million, compared to 44.5 million in 2019, a significant decrease. This resulted in many car rental companies selling off parts of their fleets as operating costs were too high and falling revenues made it unfeasible to keep the entire fleet. It’s important to be aware of the impact the pandemic has had, even if it may not have the same effect now as before, because it will affect the growth of the industry and how it will bounce back over the next few years.

In order to improve their business, car rental companies should focus on customer retention, especially frequent travelers for either business or pleasure, as this demographic represents the best opportunity for customer retention. Many companies are improving customer service by providing better technologies, a transparent process, speeding up the booking process and most importantly, a faster response rate to customers. A prime example of this is Avis Budget Group (CAR), one of the largest car rental companies in the world, which has partnered with Ford Commercial to improve efficiency and make the rental process easier for customers.

If you’ve been in the market to buy or sell a car, you’ll know that car prices are through the roof right now. People are paying premium amounts to buy cars from those who have already taken delivery of their units, because due to global supply chain issues and the lack of available parts needed for production, people who have reserved their vehicles still have to wait months for delivery. Dealerships offer incentives to customers who have leased cars from them to return the car and sell it for a premium. This has reduced the prices of many potential customers to buy their own cars, and higher maintenance costs and reduced and expensive parking spaces have increased the demand for rental cars.

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It is also interesting to note that the vast majority of people who rent a car prefer to rent an economy car, which is a compact, fuel-efficient car and hence, provides enough comfort while being easy on the pocket. The economy car accounts for over 36% of the total market share, followed by the executive car segment, which consists of cars with premium options, yet not too expensive. This is followed by luxury cars, which are premium models of premium brands, and with the rise of the middle class in India and China, the demand for luxury cars is steadily increasing.

Not surprisingly, North America is the largest car rental market, worth $23.39 billion. There are a number of reasons for this, one of which is that people in North America generally have a higher disposable income and can afford to rent cars. Also, if we consider the United States in particular, many cities were built with cars in mind, and therefore, walkability and public transportation are greatly compromised, as opposed to Europe, where most countries and cities have placed a great emphasis on the availability and reliability of public transportation, and hence, where the demand for rental vehicles may not be as high.

To determine the largest car rental companies in the world, we initially consulted companies as mentioned by Fortune Business Insights as the largest players in the industry. We then checked the annual reports and official websites of these companies to determine their fleet, revenue and number of employees. Where income was in a foreign currency, we converted it to USD to ensure that the data remained consistent across companies. Finally we assigned a 40% weight to revenue and fleet, and 20% to the number of employees. This allowed us to arrive at accurate rankings for each company. So without further ado, let’s take a look at the companies you’ll most likely be renting from on your next trips, starting with number 9:

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9. Toyota Rent a Car

Total revenue in the last financial year (in millions): N/A

Total number of vehicles in fleet: N/A

Total number of employees: no

Although mentioned in Fortune Business Insights, there are no specific statistics for Toyota Rent a Car, operated by Toyota Motor Corporation (NYSE:TM). We even checked Toyota Motor Corporation’s (NYSE:TM) annual report, but we couldn’t find any specific data regarding its rental business, so we automatically gave it last place.

8. Car Inc.

Total revenue in the last financial year (in millions): $525.7

Total number of vehicles in the fleet: 109,688

Total number of employees: 5,132

Car Inc. is the largest car rental company in China and claims to have a fleet larger than the next 19 car rental companies in China combined, with operations in 70 cities in the country. The company provides an on-demand chauffeured car service in more than 60 cities.

7. Localiza Rent a Car

Total income in the last financial year (in millions): $1,666

Total number of vehicles in the fleet: 219,406

Total number of employees: 7,582

Localiza Rent a Car is a Brazilian company and is the largest car rental company in Latin America. The company has close to 600 branches in 9 countries, with operations in Chile, Colombia, Uruguay, Paraguay, Ecuador and Argentina. The company currently has several brands in its fleet, including Volkswagen, Chevrolet, Renault and Fiat.

6. Lotte Rental Co. Ltd.

Total revenue in the last financial year (in millions): $1,744

Total number of vehicles in the fleet: 240,000

Total number of employees: 1,920

Lotte Rental is a South Korean company that has made great strides in the car rental industry, Lotte Rental is the largest car rental company in Asia.

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Disclosure: None. 9 Biggest Car Rental Companies in the World was originally published on Insider Monkey.

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