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    • Car Rental Industry South Africa

    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 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.

    The Car Rental Industry in South Africa

    The car rental industry has been significantly affected by the pandemic and resulting travel restrictions and decline in disposable income. The main business channels for car rentals are corporate, government, insurance replacement and leisure, and demand from all of these avenues declined markedly since March 2020. Car rental companies 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’s fleet had more than halved by July 2021 from February 2020. The sector, which is described as mature, has been under pressure for the past two years as brokerages and online intermediaries have driven prices down.

    Trends

    Car rental companies are looking to take advantage of a growing trend of customers who would rather rent than own a vehicle. Ride-sharing, digital aggregators and car subscriptions are providing car rental businesses with alternative revenue streams. Ride-sharing, where car owners rent out their own vehicles, gained popularity in recent years, but was slowed by the pandemic. Digital aggregators account for a large share of bookings. Subscriptions, where vehicles are hired out on short-term leases, usually on a month-to-month, allow vehicle users to change from one car to another from one month to the next.

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    The Car Rental Industry in South Africa 2021

    Full Report

    R 6 500.00(ZAR) estimated $348.71 (USD)*

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    Industry Overview

    R 4 550.00(ZAR) estimated $ 244.10 (USD)*

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    Industry Organogram

    R 450.00(ZAR) estimated $ 24.14 (USD)*

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    Historical Reports

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

    R 1 900.00(ZAR) estimated $101.93 (USD)*

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

    R 1 900.00(ZAR) estimated $101.93 (USD)*

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

    R 1 900.00(ZAR) estimated $101.93 (USD)*

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    Table of Contents

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    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.

    The Car Rental Industry

    South Africa’s car rental industry experienced zero growth in 2018 and marginal nominal growth in 2019. While the weak economy caused rental volumes in the corporate, government, local leisure and insurance replacement subsectors to contract in 2019, declining international and domestic tourism numbers placed even further pressure on the stagnating industry. The coronavirus pandemic and lockdown in South Africa from 26 March 2020 for all non-essential businesses has forced car rental companies to cancel all bookings. The lockdown and travel ban is expected to seriously affect car rental companies, which waived cancellation fees or issued rental vouchers for cancelled bookings, and closed their doors.

    Industry Trends

    Role players indicate that the poor economy and declining tourism numbers are resulting in cut-throat conditions as car-rental companies jostle for market share in a declining market. The industry has continued to benefit from partnerships with airlines, tourism companies and accommodation providers, while investment in technology has helped reduce operational costs and improve customer service delivery and satisfaction. However, the increasingly poor outlook for the economy and declining travel will continue to affect the industry and put pressure on profitability.

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    The Car Rental Industry in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $101.93 (USD)*

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    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.35 (USD)*

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    Historical Reports

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

    R 6 500.00(ZAR) estimated $348.71 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $101.93 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $101.93 (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.

    South African Car Rental industry

    The South African car rental industry grew revenue by 3.6% in 2017 reaching an estimated total of R5.2bn. The industry continued to be driven by business car rental, which accounted for 53% of the value of all sales. The leisure market remains an important sector and during 2017 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. Statistics provided by the National Association of Automobile Manufacturers of South Africa (NAAMSA) show that the car rental industry accounted for an estimated 16.0% of new car sales during 2017.

    Increasing Importance of Technology

    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 other technologies are having on the market and traveller behaviour. Information technology plays a growing role in helping companies to meet customer expectations as well as improving profit margins and making informed decisions. The increasing use of social media such as Facebook and Twitter also continues to play a significant role in the car rental industry.

    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.

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

    Full Report

    R 1 900.00(ZAR) estimated $101.93 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.35 (USD)*

    Buy Now +

    Historical Reports

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

    R 6 500.00(ZAR) estimated $348.71 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $101.93 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $101.93 (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 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.

    South African Car Rental Industry

    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.

    Current Conditions

    Competition among the industry’s three main players, global brands Avis, Europcar and Budget, is intense and although in the past this resulted in low rental prices, analysts predict that rates will increase. Companies are under pressure from shareholders, who want a better return on investment, and operating costs have risen, due in part to the weakness of the Rand and the increase in interest rates. As one of the factors driving historical industry growth is the increase in tourism, there are concerns that the number of international tourists will decrease considerably because of the amended Immigration Act, which is applicable from 1 June 2015.

    Future Growth

    Locally and in the rest of Africa the shuttle and chauffeur drive side of the car rental industry is seeing particularly strong growth. Internationally, emerging trends such as car-sharing, car clubs and ride-sharing have had an effect on the car rental market, particularly in city areas, as they provide alternatives to traditional car rentals. Services such as Uber, FlightCar and Zipcar, which was acquired by the Avis Budget Group for US$500m in 2013, can be booked easily and quickly on the internet.

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

    Full Report

    R 1 900.00(ZAR) estimated $101.93 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 71.35 (USD)*

    Buy Now +

    Historical Reports

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

    R 6 500.00(ZAR) estimated $348.71 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $101.93 (USD)*

    View Report Add to Cart

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

    R 1 900.00(ZAR) estimated $101.93 (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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