Brazil’s Localiza, Unidas, Movida fare well despite COVID-19

Despite market stress brought on by the global health pandemic, Brazil’s three largest automobile rental and leasing companies saw a collective net revenue increase in 2020 of 8.7% year-over-year to 19.9 billion reais (US$3.83bn considering year-end 2020 exchange rate).

While Localiza net revenue was up 1.1% to 10.3bn reais, Unidas revenue increased 17.5% to 5.5bn reais and Movida was up 6.5% to 4.1bn reais.

In terms of net profit, Localiza saw a 25.7% increase to just over 1bn reais, Unidas saw a 15.2% increase to 402mn reais, and Movida’s net profit rose 2.5% to 234mn reais.

As seen below, the impact of the pandemic and the correlating shutdown periods mostly affected short term car rentals. Despite this, the collaborative performance of rent-a-car in Brazil was still up year-over-year.

Localiza

Net revenues for rental and leasing increased 5.3% overall. While rent-a-car revenues rose 3.2%, the company’s fleet division increased nearly four times more, up 12% year-over-year. However, revenue from used car sales slid 1.6% to 6.1bn reais.

As for the number of vehicles in the company’s fleet, it dropped 9.6% to 292,159 units last year, being 216,334 car rentals, 61,657 fleet, and an additional 14,168 franchised units.
PHOTO: Localiza fleet size (source: Localiza)
 

Unidas

Net rental and leasing revenue rose 7.1% overall. While car rental revenues rose 6.2% to 970mn reais, the company’s fleet division increased 8.4% year-over-year to 1.32bn reais. Meanwhile, the firm certainly received a boost from used car sales which showed revenue up 26.4% to 3.18bn reais.

Its vehicle fleet rose 1.9% to 167,791 units last year, being 73,500 car rentals, 90,926 fleet, and an additional 3,718 franchised units. Growth was only seen in the fleet group which grew 6.9%.

Movida

Net rental revenues increased 1.5% overall. Despite car rental revenues falling 3% to 1.13bn reais, the company’s fleet division rose 12.7% to 517mn reais. Net revenue from used car sales was up 10.2% to 2.44bn reais.

As for the number of cars in its fleet, it rose 7.9% to 118,295 units. A total of 71,041 are car rentals and 47,244 fleet. Most of the company’s uptick was due to a 22% increase in the latter.  

Looking Ahead

With the periodic restrictions brought on by the pandemic, including factory shutdowns and lack of components, 2021 will remain challenging. The second semester, however, should be better and year-over-year upticks are expected once again, especially when it comes to long-term leasing.

Localiza, Unidas, and Movida represent approximately 75% of the Brazilian market.