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    • Car Rental Industry South Africa

    The Car Rental Industry in South Africa 2023

    Michael Felton | South Africa | 24 November 2023

    The Car Rental Industry in South Africa 2021

    Stephen Timm | South Africa | 22 September 2021

    The Car Rental Industry in South Africa 2020

    Yasmin Mahomedy | South Africa | 24 April 2020

    The Car Rental Industry in South Africa 2018

    Yasmin Mahomedy | South Africa | 29 May 2018

    The Car Rental Industry in South Africa 2015

    Brenda Young | South Africa | 08 June 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the car rental industry in South Africa provides a comprehensive overview of the sector and information on the size and state of the industry including fleet size and utilisation, rental car purchases and top selling vehicles sold to the industry, second hand sales, major players and corporate actions. It includes information on relevant influencing factors such as tourism trends, crime and safety and infrastructure and road conditions. There are profiles of 15 companies including CMH, Motus and Zeda, who between them own some of the major rental brands, as well as other notable players such as Pace, RentMyRide, Woodford Group and Bluu.

    Introduction

    • The car rental industry has recovered since the pandemic in line with tourism and business travel.
    • Revenue increased in 2021 and 2022, and there are expectations of another significant increase in 2023.
    • Car rental companies are looking at taking advantage of a growing trend of people renting rather than owning cars.
    • Ride-sharing, car subscriptions, online platforms and digital aggregators are providing car rental businesses with alternative revenue streams.

    Trends

    • As business travel recovers, vehicle rental companies are adjusting their services and pricing to meet the needs of corporate clients and travellers.
    • Connected car technology, such as in-car Wi-Fi and real-time vehicle tracking, is becoming more common in rental vehicles.
    • Including additional products such as GPS devices, Wi-Fi and insurance packages.
    • Investment in technology to enhance customer experiences.
    • More flexible long-term rental options and subscription services are gaining popularity.
    • Optimising vehicle fleets to include more fuel-efficient models and alternative fuel vehicles.
    • Some rental companies are exploring partnerships and integration with ride-hailing services to offer customers seamless transport solutions.
    • Strategic partnerships and alliances with airlines, hotels and travel agencies.

    Opportunities

    • Electric and hybrid vehicle rental services.
    • Formation of partnerships and alliances with airlines, hotels, and travel agencies.
    • Formation of partnerships with ride-hailing services.
    • Provision of long-term rentals.
    • Subscription-based car rental services.
    • Targeting corporate clients by offering tailored services, such as dedicated packages and loyalty programmes.

    Challenges

    • Access to prime locations, particularly at major airports and city centres.
    • Building and maintaining trust and credibility with customers.
    • Changing customer behaviours and shifts in preferences, including the shift to remote work and online meetings, can affect business travel and the demand for rental vehicles.
    • Competition from ride-hailing and ride-sharing services.
    • Continuous vehicle maintenance and repairs.
    • Economic conditions can affect consumer spending and travel, impacting demand for rental vehicles.
    • Establishing and sustaining strong brand recognition and customer loyalty.
    • The industry is highly competitive, with many players vying for market share.
    • The need to invest in technology for reservation systems, online booking platforms and fleet management.
    • Vulnerability to unforeseen global and local events which led to travel restrictions and reduced demand.

    Outlook

    • The outlook for the car rental industry is subject to local and global economic conditions, evolving customer preferences, technological advancements and global events.
    • The industry is expected to return to pre-pandemic levels by 2024 and grow further thereafter.
    • The significant increase in international inbound and local tourist travel and business travel in 2023 provide growth opportunities.
    • The supply of new vehicles has improved and enabled the industry to acquire more rental fleet to take advantage of higher business activity.
    • Diversification strategies continue to bear fruit.
    • The industry continues to face challenges in the form of economic uncertainty, regulatory challenges on emissions standards and safety requirements, and meeting consumer demand for eco-friendly vehicles.
    • The industry remains highly competitive, leading to pricing pressures and the need for differentiation.

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    The Car Rental Industry in South Africa
    The Car Rental Industry in South Africa 2023

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    Industry Landscape

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    Industry Organogram

    R 450.00(ZAR) estimated $ 25.42 (USD)*

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    Historical Reports

    The Car Rental Industry in South Africa 2021-09-22

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    The Car Rental Industry in South Africa 2020-04-24

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    The Car Rental Industry in South Africa 2018-05-29

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    The Car Rental Industry in South Africa 2015-06-08

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 6
    2.3. Size of the Industry 6
    3. LOCAL 10
    3.1. State of the Industry 10
    3.2. Key Trends 15
    3.3. Key Issues 16
    3.4. Notable Players 16
    3.5. Corporate Actions 18
    3.6. Regulations 19
    3.7. Enterprise Development and Social Development 21
    4. AFRICA 24
    5. INTERNATIONAL 27
    6. INFLUENCING FACTORS 32
    6.1. Unforeseen Events 32
    6.2. Economic Environment 33
    6.3. Labour 34
    6.4. Environmental Issues 35
    6.5. Electric Vehicles 35
    6.6. Crime and Road Safety 36
    6.7. Cyclicality 37
    6.8. Tourism Trends 37
    6.9. Infrastructure and Road Conditions 38
    6.10. Technology, R&D, Innovation 38
    6.11. Government Support 39
    6.12. Input Costs 39
    7. COMPETITIVE ENVIRONMENT 40
    7.1. Competition 40
    7.2. Ownership Structure of the Industry 41
    7.3. Barriers to Entry 41
    8. INDUSTRY SUMMARY 43
    9. OUTLOOK 44
    10. INDUSTRY ASSOCIATIONS 45
    11. REFERENCES 46
    11.1. Publications 46
    11.2. Websites 47
    APPENDICES 49
    Appendix 1 - Summary of Notable Players 49
    COMPANY PROFILES 51
    Bluu Car Rental (Pty) Ltd 51
    C M H Car Hire (Pty) Ltd 54
    Car Hire Brokers (Pty) Ltd 58
    CFAO Mobility (Pty) Ltd 60
    FlexClub ZA Technologies (Pty) Ltd 66
    Gage Car Rental (Pty) Ltd 68
    Genissis 1 Cash Car Rental CC 70
    Inclusion South Africa (Pty) Ltd 71
    Motus Holdings Ltd 72
    Pace Car Rental (Pty) Ltd 77
    RentMyRide (Pty) Ltd 79
    Springs Car Wholesalers (Pty) Ltd 80
    Woodford Group (Pty) Ltd (The) 83
    Zeda Ltd 85
    Zenith Car Rental (Pty) Ltd 88

    Report Coverage

    This report focuses on the South African car rental industry, with comprehensive information on the state of the industry, effects of the pandemic and the decline in tourism and travel, trends, corporate actions and developments. There are profiles of 14 companies including the major players such as Barloworld (Avis and Budget), Motus (Tempest) and CFAO Motors (Hertz), other established companies in the sector such as Woodford Group and Pace Car Rental, and players in the ride-sharing, digital aggregation and car subscription space such as Inclusion South Africa (Planet24), Flexclub and RentMyRide.

    Introduction

    This report focuses on the South African car rental industry. Car rental companies generated about R3.1bn in revenue (not including the sale of second-hand cars) in 2020, a 43% decline from R5.4bn in 2019, according to the Southern African Vehicle Rental and Leasing Association (Savrala) which represents about 95% of the industry. The industry has been significantly affected by the pandemic and resulting travel restrictions and decline in disposable income. Car rental companies, however, have been able to partially offset losses by reducing fleet, branch and employee numbers and have benefited from an increase in second-hand vehicle prices. The industry, which is described as a mature industry, has been under pressure for the past two years as brokerages and online intermediaries have driven prices down.

    Strengths

    • Companies partner with airlines, tourism companies and accommodation providers.
    • Investment in technology that helps reduce operational costs and improve customer service delivery and satisfaction.

    Weaknesses

    • A large part of car rental business is dependent on tourism which increases substantially during peak summer months.
    • The cost of purchasing new vehicles is dependent on the exchange rate, which is volatile.
    • The industry is mature, and hence return on investment is not as high as that of new industries.
    • The industry is vulnerable to the economic downturn which usually causes businesses and individuals to reduce spending on corporate and leisure travel, which affects the volume of car rentals.

    Opportunities

    • Development of car rental products such as car-sharing, collaboration with e-hailing apps and car subscriptions.
    • More effective use of the technology, including social media marketing.
    • The shortage of semi-conductors for new cars has resulted in demand for second-hand cars increasing, which has resulted in the price of second-hand cars climbing.

    Threats

    • Consumer disposable income is under pressure because of the pandemic and high unemployment.
    • The continued use of video-conferencing platforms such as Zoom and Microsoft Teams may reduce business travel.
    • The pandemic and associated travel restrictions have led to a decline in foreign tourists and negatively affected car rental revenue.
    • Vehicle manufacturers have reduced production of new vehicles because of a shortage of semi-conductors. This is likely to lead to an increase in new car prices.

    Outlook

    The outlook for the car rental sector, while having improved since 2020, remains uncertain and dependent on when airline travel recovers and travel restrictions are removed. Motus CEO Osman Arbee believes the sector will recover in 2022 as airlines come back online, while Southern African Vehicle Rental and Leasing Association general manager Sandile Ntseoane forecast in March 2021 that car rental bookings in 2021 will be 30% of 2019 volumes. Motus’s car rental business revenue at the end of June 2021 was at about 50% of what it was in February 2020. Arbee expects this to grow to 65% to 70% by the end of December 2021 and 80% to 85% by June 2022. Corné Venter, retail and rental CEO at Motus, says the speed of the recovery will be dependent on new waves of the pandemic and variants of the virus as well as changes in vaccine efficacy. The adoption of video conferencing technology and customer budget constraints may further delay the recovery of the industry to pre-pandemic levels.

    Read More..
    The Car Rental Industry in South Africa
    The Car Rental Industry in South Africa 2021

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

    Buy Now +

    Industry Organogram

    R 450.00(ZAR) estimated $ 25.42 (USD)*

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    Historical Reports

    The Car Rental Industry in South Africa 2023-11-24

    R 9 500.00(ZAR) estimated $536.56 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2020-04-24

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    The Car Rental Industry in South Africa 2018-05-29

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    The Car Rental Industry in South Africa 2015-06-08

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 12
    4.1.2. Regulations 13
    4.1.3. Enterprise Development and Socio-Economic Development 14
    4.2. Continental 15
    4.3. International 17
    5. INFLUENCING FACTORS 20
    5.1. Economic Environment 20
    5.2. Coronavirus 21
    5.3. Crime and Road Safety 22
    5.4. Input Costs 23
    5.5. Technology, Research and Development (R&D) and Innovation 23
    5.6. Labour 24
    5.7. Cyclicality 25
    5.8. Environmental Concerns 25
    6. COMPETITION 26
    6.1. Barriers to Entry 27
    7. SWOT ANALYSIS 27
    8. OUTLOOK 28
    9. INDUSTRY ASSOCIATIONS 29
    10. REFERENCES 29
    10.1. Publications 29
    10.2. Websites 30
    APPENDIX 1 31
    Summary Of Notable Players 31
    COMPANY PROFILES 33
    BARLOWORLD SOUTH AFRICA (PTY) LTD 33
    BIDVEST CAR RENTAL (PTY) LTD 40
    C M H CAR HIRE (PTY) LTD 42
    CAR HIRE BROKERS (PTY) LTD 46
    CFAO MOTORS (PTY) LTD 48
    FLEXCLUB ZA TECHNOLOGIES (PTY) LTD 54
    GAGE CAR RENTAL (PTY) LTD 56
    GENISSIS 1 CASH CAR RENTAL CC 58
    INCLUSION SOUTH AFRICA (PTY) LTD 60
    MOTUS HOLDINGS LTD 61
    PACE CAR RENTAL (PTY) LTD 66
    RENTMYRIDE (PTY) LTD 68
    SPRINGS CAR WHOLESALERS (PTY) LTD 69
    WOODFORD GROUP (PTY) LTD (THE) 72

    Report Coverage

    This report focuses on the South African car rental industry and includes information on the size and state of the industry including size of fleet and other statistics, and the factors that influence the industry such as coronavirus, which has shut down the industry since March. There are profiles of 9 companies including major players Barloworld (Avis and Budget), Motus (Europcar and Tempest), and CMH (First Car Rental). Profiles of other companies include RentMyRide, which enables people to rent out their own cars and Car Hire Brokers.

    Introduction

    This report focuses on the South African car rental industry which had annual revenue of R5.7bn in 2019. The industry has been under pressure for the past two years. There was zero growth in 2018 and marginal nominal growth in 2019. While the weak economy caused rental volumes in corporate, government, local leisure and insurance replacement to contract in 2019, declining international and domestic tourism numbers placed even further pressure on the stagnating industry. As companies sought to be innovative and adapt to the challenging conditions, the global outbreak of coronavirus and subsequent lockdown in South Africa from 26 March 2020 for all non-essential businesses has forced car rental companies to close and cancel all bookings.

    Strengths

    • Companies partner with airlines, tourism companies and accommodation providers.
    • Investment in technology that helps reduce operational costs and improve customer service delivery and satisfaction.

    Weaknesses

    • A large part of car rental business is dependent on tourism which increases substantially during peak summer months.
    • Vulnerable to the economic downturn which usually causes businesses and private individuals to reduce spending on corporate and leisure travel, which affects the volume of car rentals.

    Opportunities

    • Development of car rental products such as car-sharing and collaboration with e-hailing apps.
    • More effective use of the technology, including social media marketing.

    Threats

    • Continued uncertainty on the duration of the coronavirus pandemic, resulting in further contraction of the industry.
    • Negative effect of the poor economy on local travel and international tourism.
    • Rising costs threaten margins.

    Outlook

    In December 2019, Lance Smith, sales executive at Avis Budget, reported that “the industry will grow as the domestic economy recovers and both domestic and foreign tourism doubles to 21 million by 2030. Corporate and leisure travellers will continue to need vehicles, as we are a vast country with an underdeveloped public transport system.” However, a weakening economy, exacerbated by the coronavirus pandemic, is expected to cause South Africa’s car rental industry volumes to decline significantly. On a positive note, the industry could benefit from the weaker rand, which is attractive for international tourists who are still wanting to travel after coronavirus, but this will depend to a large extent on government addressing crime and improving the safety of tourists.

    Read More..
    The Car Rental Industry in South Africa
    The Car Rental Industry in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

    Buy Now +

    Historical Reports

    The Car Rental Industry in South Africa 2023-11-24

    R 9 500.00(ZAR) estimated $536.56 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2021-09-22

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2018-05-29

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2015-06-08

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 5
    4.1. Local 5
    4.1.1. Corporate Actions 8
    4.1.2. Regulations 8
    4.1.3. Enterprise Development and Socio-Economic Development 9
    4.2. Continental 10
    4.3. International 11
    5. INFLUENCING FACTORS 13
    5.1. Economic Environment 13
    5.2. Coronavirus 13
    5.3. Crime and Road Safety 14
    5.4. Input Costs 14
    5.5. Technology, Research and Development (R&D) and Innovation 15
    5.6. Labour 16
    5.7. Cyclicality 17
    5.8. Environmental Concerns 17
    6. COMPETITION 18
    6.1. Barriers to Entry 18
    7. SWOT ANALYSIS 19
    8. OUTLOOK 19
    9. INDUSTRY ASSOCIATIONS 20
    10. REFERENCES 20
    10.1. Publications 20
    10.2. Websites 20
    APPENDIX 1 22
    Summary of Notable players 22
    COMPANY PROFILES 24
    BARLOWORLD SOUTH AFRICA (PTY) LTD 24
    C M H CAR HIRE (PTY) LTD 31
    CAR HIRE BROKERS (PTY) LTD 34
    CFAO MOTORS (PTY) LTD 36
    GAGE CAR RENTAL (PTY) LTD 42
    MCCARTHY (PTY) LTD 44
    MOTUS HOLDINGS LTD 50
    RENTMYRIDE (PTY) LTD 54
    SPRINGS CAR WHOLESALERS (PTY) LTD 55

    Report coverage

    The South African Car Rental report describes the current situation in the country and emerging trends, provides statistics and discusses factors influencing the sector’s success. The report also profiles 11 car rental companies, including Unitrans Automotive (Pty) Ltd which owns the Hertz Rent A Car business and which is a subsidiary of the Steinhoff Group. Also profiled are new entrants, RentMyRide (Pty) Ltd, which allows users to rent out their personal vehicles using the RentMyRide website, and Locomute which operates a car-sharing network around South African cities.

    Report coverage

    The South African Car Rental report describes the current situation in the country and emerging trends, provides statistics and discusses factors influencing the sector’s success. The report also profiles 11 car rental companies, including Unitrans Automotive (Pty) Ltd which owns the Hertz Rent A Car business and which is a subsidiary of the Steinhoff Group. Also profiled are new entrants, RentMyRide (Pty) Ltd, which allows users to rent out their personal vehicles using the RentMyRide website, and Locomute which operates a car-sharing network around South African cities.

    Introduction

    This report focuses on the South African car rental industry which grew revenue by 3.6% in 2017, to reach R5.2bn. The industry continued to be driven by business car rental, which accounted for 53% of the value of all sales. There was an increase of 16.7% in car rentals by international visitors and a 1.6% growth in local leisure rentals following on from growth of 22% and 12% respectively in the foreign and local leisure segments in the previous year. Although the growth of ridesharing and car-sharing has begun to affect the international car rental market, local car rental companies believe that South Africa has not followed this trend. However, major players in the industry have acknowledged that with technology playing an increased role in travellers’ lives, “the car rental industry has had to improve its services and respond to the impact that Uber and others are having on the market and traveller behaviour.”

    Strengths

    • Companies partner with airlines, tourism companies and accommodation providers.
    • Investment in technology that assists in reducing operational costs and improving customer service delivery and satisfaction.
    • There are high levels of investment in infrastructure and well-established companies have appropriately-sized fleets.

    Weaknesses

    • A large part of car rental business is dependent on tourism which increases substantially during peak summer months.
    • Vulnerable to the economic downturn which may cause businesses and private individuals to decrease their spending on corporate and leisure travel respectively, thus impacting the volume of car rentals.

    Opportunities

    • For new SMMEs, development of car rental products such as car-sharing and other e-hailing apps.
    • More effective use of the internet, including social media marketing. As mentioned, companies can offer retail discounts through social media channels.

    Threats

    • Growing use of car-sharing and other schemes are a threat to traditional car rental companies.
    • Rising costs threaten margins.
    • Weakening of the economy in South Africa could adversely affect local travel.

    Outlook

    The South Africa car rental market is expected to grow at a moderate growth rate during the next few years with the business car rental sector continuing to drive growth. The online booking segment is also expected to see growth as more customers enjoy the benefits of planning and booking their vehicles in a quicker and easier way. It is still unclear how the concept of ridesharing and car-sharing will ultimately affect the car rental market but the major car rental companies are positive about the future. Barloworld reported, “The Car Rental Division expects to see further growth in the foreign in-bound segment while the corporate and local leisure markets will remain subdued” mainly due to the country’s economy, which is dependent to a large extent on business and consumer confidence.

    Read More..
    The Car Rental Industry in South Africa
    The Car Rental Industry in South Africa 2018

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

    Buy Now +

    Historical Reports

    The Car Rental Industry in South Africa 2023-11-24

    R 9 500.00(ZAR) estimated $536.56 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2021-09-22

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2020-04-24

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2015-06-08

    R 1 900.00(ZAR) estimated $107.31 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 7
    4.1. Local 7
    4.1.1. Corporate Actions 9
    4.1.2. Regulations 9
    4.1.3. Enterprise Development and Social Economic Development 11
    4.2. Continental 12
    4.3. International 13
    5. INFLUENCING FACTORS 14
    5.1. Economic Environment 14
    5.2. Rising Operating Costs 15
    5.3. Crime and Road Safety 16
    5.4. Labour 17
    5.5. Technology, Research and Development (R&D) and Innovation 18
    5.6. Cyclicality 19
    5.7. Environmental Concerns 19
    6. COMPETITION 20
    6.1. Barriers to Entry 22
    7. SWOT ANALYSIS 22
    8. OUTLOOK 22
    9. INDUSTRY ASSOCIATIONS 23
    10. REFERENCES 23
    10.1. Publications 23
    10.2. Websites 23
    COMPANY PROFILES 25
    BARLOWORLD SOUTH AFRICA (PTY) LTD 25
    C M H CAR HIRE (PTY) LTD 32
    CAR HIRE BROKERS (PTY) LTD 35
    GAGE CAR RENTAL (PTY) LTD 37
    LOCOMUTE (PTY) LTD 39
    MCCARTHY LTD 40
    MOTUS HOLDINGS (DIVISION OF IMPERIAL GROUP LTD) 46
    RENTMYRIDE (PTY) LTD 53
    SPRINGS CAR WHOLESALERS (PTY) LTD 54
    UNITRANS AUTOMOTIVE (PTY) LTD 57

    Report Coverage

    This report describes the current situation in the country, emerging trends within the industry and factors influencing the sector’s success. The report also profiles six of the major car rental companies, including Avis Rent A Car and Budget Rent A Car, subsidiaries of Barloworld South Africa (Pty) Ltd, a multinational company that operates in 24 countries and generates R62bn in annual revenue.

    Introduction

    This report focuses on the South African car rental industry which grew revenue by 5% to R4.89bn in 2014. The members of the South African Vehicle Renting and Leasing Association (SAVRALA), who account for 90% of the sector, have a combined fleet of 63,000 vehicles and employ approximately 6,000 people. Competition among the industry’s three main players, Avis, Europcar and Budget, previously resulted in low rental prices but analysts confirm that car rental companies are now under pressure from large shareholders, who want a better return on investment.

    Strengths

    • Investment in infrastructure and appropriately sized fleets.
    • Investment in technology that assists in reducing operational costs and improving customer service delivery and satisfaction.
    • Partnerships with airlines, tourism companies and accommodation providers.

    Weaknesses

    • A large part of car rental business is dependent on tourism which increases substantially during peak summer months but during the winter months, the car rental industry reduces its fleet.
    • Vulnerable to the economic downturn which may cause businesses and private individuals to decrease their spending on corporate and leisure travel respectively, thus impacting the volume of car rentals.

    Opportunities

    • Development of new car rental products such as car sharing and car clubs.
    • Expansion by local companies into Africa.
    • More effective use of the internet, including social media.
    • The shuttle and chauffeur drive side of the industry.

    Threats

    • Crime and increasing accident rates.
    • Further weakening of the economy in South Africa, which will adversely affect local and international travel.
    • Growing use of car sharing and car clubs.
    • Xenophobic attacks will affect the tourism industry upon which the car rental industry is dependent.

    Outlook

    Industry players believe that higher interests rates, the fluctuating rand and increasing inflation will result in increased car rental rates. Together with rising fuel prices and the corresponding increase in airline ticket prices, these increases are expected to threaten the growth of the local industry. Also of concern to players in the car rental industry is the wave of xenophobic attacks which has resulted in tourists from neighbouring countries cancelling bookings and the introduction of the new regulations relating to travelling with minors. On a positive note, the shuttle and chauffeur drive side of the industry is expected to grow, especially in the rest of Africa.

    Read More..
    The Car Rental Industry in South Africa
    The Car Rental Industry in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.12 (USD)*

    Buy Now +

    Historical Reports

    The Car Rental Industry in South Africa 2023-11-24

    R 9 500.00(ZAR) estimated $536.56 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2021-09-22

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2020-04-24

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    The Car Rental Industry in South Africa 2018-05-29

    R 1 900.00(ZAR) estimated $107.31 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 11
    4.1.3. Enterprise Development and Social Economic Development 13
    4.2. Continental 14
    4.3. International 15
    5. INFLUENCING FACTORS 16
    5.1. Economic Environment 16
    5.2. Rising Input Costs 17
    5.3. Labour 17
    5.4. Cyclicality 19
    5.5. Crime and Road Safety 20
    5.6. Environmental Concerns 20
    6. COMPETITION 21
    6.1. Barriers to Entry 22
    6.2. Substitutions for Traditional Car Rental 22
    6.3. Innovation 23
    6.4. Technology 24
    7. SWOT ANALYSIS 25
    8. OUTLOOK 26
    9. INDUSTRY ASSOCIATIONS 26
    10. REFERENCES 26
    10.1. Publications 26
    10.2. Websites 27
    APPENDIX 1 28
    SAVRALA Rental Members 28
    SAVRALA Leasing Members 29
    SAVRALA Associate Members 29
    SAVRALA Partners 30
    SAVRALA OEMs 30
    ORGANOGRAM 33
    COMPANY PROFILES 34
    BARLOWORLD SOUTH AFRICA (PTY) LTD 34
    BIDVEST CAR RENTAL (PTY) LTD 40
    CAR HIRE BROKERS (PTY) LTD 42
    CMH CAR HIRE (PTY) LTD 44
    GAGE CAR RENTAL (PTY) LTD 47
    IMPERIAL VEHICLES (DIVISION OF IMPERIAL GROUP LTD) 49
    SPRINGS CAR WHOLESALERS (PTY) LTD 57
    UNITRANS AUTOMOTIVE (PTY) LTD 60

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