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As Brazil shrinks, its fleet and lease industry grows

Brazil represents about half of South America, not just in land mass and population, also in raw vehicle numbers. There are around 77 million vehicles in South America, 40 million of which are registered in Brazil.
Last year, 2.4 million vehicles were registered in Brazil, the third consecutive year of dropping sales. The most popular brands in 2015 were Fiat (16.4%), Renault (11.4%), VW (10.5%), Ford (7.9%), GM (6.9%) and Nissan (2.1%). The car rental sector is the biggest customer of the automotive industry in Brazil, taking up just short of 340,000 units last year.
5 million
Out of those 40 million vehicles in Brazil, 12% - around 5 million – are used by and for businesses. The largest vocational segments with professional fleets are pharmaceutical, agribusiness and food companies. And, as mentioned above, car rental companies. The average fleet size is around 100 vehicles.
Of the 5-million strong business fleet, some 6 to 9%  - total estimates vary from 300,000 to around 450,000 vehicles – are managed by third parties under some kind of fleet programme, be it operational leasing, long-term rental or fleet management services.
Highly fragmented
The leasing market remains highly fragmented, with up to 5,000 companies involved in the sector. Most of these are generalists, focusing their attention on car rentals, for instance. The field of actual specialists in corporate fleet management is much smaller, and there is a tendency towards consolidation in the market. The Top 3 companies alone control 22% of the entire market, the Top 10 companies take up 60% of the market.
Interesting to note is the uneven geographic distribution of Brazil's fleet market. The country is vast –  as big as the contiguous United States – and much of it is plagued by poor roads, but more than half of Brazil's corporate fleet is concentrated in the densely populated southeastern corner of the country, location of Sao Paulo, Rio de Janeiro and other major cities.  22/04/2016  |  Frank Jacobs


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