15 juin 22

Fleets of Brazil rental, leasing agencies see growth despite challenges

The number of automobiles and light commercial vehicles (LCV) being registered by vehicle rental and leasing companies is on the rise in Brazil.

In 2021, a total of 441,858 cars and LCVs were registered by these organizations, representing a 12.9% increase from the year before, Brazil’s vehicle renter association ABLA reported.

If including all vehicles (automobiles, LCVs, trucks, buses, and motorcycles), registrations rose 39.2% to 848,244 units, the association reported in the 2022 edition of its Brazilian vehicle rental industry Yearbook.

“Despite the difficulties created by the pandemic [Covid 19], statistics show that vehicle sales and total fleet owned by rental and leasing companies continue to grow over 2020 numbers,” says ABLA president Marco Aurélio Nazaré (pictured above).

High interest rates, production limitations, and car price increases are some of the challenges in Brazil, according to Mr. Nazaré but the ABLA team remains confident. “We have a renewed strategic plan with a vision of the coming years, of which we have prepared with great attention and care,” the executive said in the Yearbook. 

By brand, FCA led the pack in 2021 with 142,504 units registered by rental and leasing agencies, up 32.3% year-over-year. It was followed by Volkswagen with 85,164 units (up 19.3%), General Motors with 48,045 units (up 10.9%), and Renault with 30,577 (up 6.92%).

In terms of vehicle types, small hatchbacks are very popular in Brazil. The category saw a 23.8% increase year-over-year to 85,907 units registered. 

It was followed by entry level compact cars which rose 23.2% to 83,486 units, SUVs (up 11.9% to 42,920 units), small sedans (+13.5% to 48,658 units), and small pickups (+7.7% to 27,707 units).

Regarding pickups, which are quite popular for the commercial fleet, some of the popular models in 2021 were small pickups from Fiat such as the Toro and Strada. Other mid-sized pickups which can be found on Brazilian streets are Toyota Hilux, Chevrolet S10, Ford Ranger, Volkswagen Amarok, and Nissan Frontier.

2022 Fiat Toro (courtesy of Fiat)

Total Fleet

In 2021, a total of 1.14mn cars and LCVs were owned by vehicle and rental agencies, representing a 12.9% increase from the one million vehicles reported the year before. If including all vehicles, the total fleet of these companies nearly doubled in 2021 to 2.22mn.

By brand, FCA leads with 290,558 units owned by the rental market, up 25.6% year-over-year. It was followed by Volkswagen (up 21.1% to 239,646 units), General Motors (+15.1% to 171,735 units), and Renault (+8.9% to 101,111 units).

In terms of vehicle types, rental agencies own 260,097 small hatchbacks (up 22.9% y-o-y), 243,971 entry level compact cars (+21.5%), 165,701 SUVs (+14.6%), and 151,737 small sedans (+13.4%), the Yearbook said.

Keep in mind that the average age of these vehicles jumped by 40% in 2021 to 27.4 months, much of this due to companies holding on to current fleet owing to lacks in vehicle supply and other issues.

Southeast Domination

A vast majority of the vehicle licensing in Brazil takes place in the Southeast. In 2021, a total of 346,451 new registrations were reported by vehicle rental and leasing agencies. (78.4% of the total) 

As for total fleet, companies in the Southeast are home to 904,946 automobiles and LCVs (79% of the total). The four states in the Southeast are Sao Paulo, Minas Gerais, Rio de Janeiro, and Espirito Santo.

For more information on the fleet and mobility market in Brazil and countries around the world, visit the Wikifleet pages of Global Fleet.

Photo: ABLA president Marco Aurélio Nazaré (source: ABLA 2022 Yearbook)

Authored by: Daniel Bland