|Last Quarterly Update:||10/7/2013|
|SIC Codes:||7513, 7514, 7515|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry rent and lease passenger cars, trucks, and trailers. Major companies include Avis Budget Group, Enterprise Holdings, Hertz Global Holdings, Ryder, and U-Haul International (all based in the US), along with China Auto Rental (China), LeasePlan (the Netherlands), and Sixt (Germany).
For global expansion, all eyes are on China. Car rentals are growing in popularity in China's big cities, with demand being driven by better living standards and limits on ownership of private cars. Automobile leasing in China could grow to more than $6 billion in sales by 2015, according to Roland Berger Strategy Consultants.
The auto rental and leasing industry in the US includes about 5,000 companies with combined annual revenue of about $50 billion.
Many leading US-based car rental companies also have international operations, primarily at international airports and usually through local franchisees.
The industry depends highly on the general state of the US economy because most customers are business or vacation/leisure travelers, whose numbers can rapidly fall during an economic slowdown. Big companies have economies of scale in acquiring vehicles and customers. Small companies can compete effectively by providing better service, alternative products, or lower prices. The US industry is highly concentrated: the 50 largest companies generate more than 80 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include the rental and leasing of passenger cars, which accounts for about 65 percent of industry revenue, ...
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