Brazil Car Rental Market Size, Share, Trends and Forecast by Booking Type, Rental Length, Vehicle Type, Application, End User, and Region, 2025-2033

Brazil Car Rental Market Overview:

The Brazil car rental market size reached USD 1,814.00 Million in 2024. The market is projected to reach USD 2,277.40 Million by 2033, exhibiting a growth rate (CAGR) of 2.56% during 2025-2033. The market is driven by significant government tourism infrastructure investments through the FUNGETUR program, rapid digital platform adoption as Brazil emerges as a leading smartphone market, and the integration of sustainable transportation solutions as companies expand electric vehicle fleets to meet environmental goals. Additionally, increasing international tourist arrivals and the rising preference for flexible mobility solutions over traditional vehicle ownership are greatly supporting the Brazil car rental market share.

Brazil Car Rental Market Trends:

Government Tourism Infrastructure Development and Policy Support

The Brazilian government has implemented comprehensive tourism development strategies that are fundamentally transforming the car rental landscape. Brazil achieved an unprecedented 6.6 million international tourists in 2024, surpassing historic records from major events like the 2014 FIFA World Cup and 2016 Olympic Games. This achievement is directly attributable to strategic government initiatives, including the establishment of the FUNGETUR (General Tourism Fund) which provides critical financial resources to strengthen the entire tourism supply chain. The ministry has been investing heavily in improving tourism infrastructure through construction projects spanning from north to south, while simultaneously supporting the sector through targeted funding mechanisms. For 2025, the government unveiled fresh regional investment initiatives through the International Tourism Acceleration Program (PATI), dedicating BRL 63.6 million (about USD 10.24 million) to attract additional domestic flights and create roughly 500,000 extra seats. These systematic investments in tourism infrastructure, combined with Brazil's participation in major international tourism events and the promotion of the "Marca Brasil" brand, are creating sustained demand for flexible transportation solutions, directly benefiting the car rental industry as visitors require reliable mobility options to explore the country's diverse destinations.

Digital Transformation and Online Platform Adoption

The Brazilian car rental market is experiencing a fundamental shift toward digital-first operations, driven by the country's rapid technological advancement and changing consumer preferences. Brazil is projected to become one of the five largest smartphone markets globally by 2025, with approximately 200 million connections, according to the International Trade Administration. This digital infrastructure expansion is compelling car rental companies to abandon traditional brick-and-mortar business models in favor of sophisticated online platforms that offer customers seamless booking experiences, real-time vehicle monitoring, and contactless pickup services. The advancement of car rental technology now includes features for real-time operational monitoring and performance tracking, enabling companies to optimize fleet management while providing customers with enhanced transparency and convenience. Brazilian consumers, particularly in urban areas, are increasingly comfortable with app-based reservations, mobile check-ins, and digital payment systems, creating a competitive advantage for companies that invest in technological innovation. This digital transformation extends beyond customer-facing applications to include backend systems for fleet optimization, predictive maintenance, and dynamic pricing strategies that allow companies to maximize utilization rates and respond quickly to market demand fluctuations across Brazil's diverse regional markets.

Sustainability Focus and Electric Vehicle Integration

The Brazil car rental market growth is being significantly influenced by the accelerating adoption of sustainable transportation solutions and environmental consciousness among both consumers and businesses. Ride-hailing app 99 exemplified this trend in May 2024 when it doubled its electric vehicle target for Brazil from the original 10,000 to 20,000 electric vehicles by the end of 2025, demonstrating the viability and growing demand for eco-friendly mobility options. This expansion is part of a strategic alliance with major companies including Raizen, Movida, and BYD, with the consortium investing USD 47.34 million specifically to promote sustainable urban transportation and support Brazil's broader environmental objectives. The initiative reflects growing corporate and consumer awareness about environmental impact, with concerns about lower emissions driving increased demand for car rental options that incorporate hybrid and electric vehicles. Car rental companies are responding by gradually integrating sustainable vehicles into their fleets, though availability remains limited and represents a significant growth opportunity. Government policies supporting electrification, including the MOVER (Green Mobility and Innovation Program) which provides incentives for low-emission vehicles, are creating favorable conditions for this transition. As charging infrastructure continues to expand across Brazil's major urban centers and tourist destinations, car rental companies that embrace sustainable fleet options are positioning themselves to capture environmentally conscious customers while potentially reducing long-term operational costs through lower fuel and maintenance expenses.

Brazil Car Rental Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on booking type, rental length, vehicle type, application, and end user.

Booking Type Insights:

• Offline Booking
• Online Booking

The report has provided a detailed breakup and analysis of the market based on the booking type. This includes offline booking and online booking.

Rental Length Insights:

• Short Term
• Long Term

A detailed breakup and analysis of the market based on the rental length have also been provided in the report. This includes short term and long term.

Vehicle Type Insights:

• Luxury
• Executive
• Economy
• SUVs
• Others

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes luxury, executive, economy, SUVs, and others.

Application Insights:

• Leisure/Tourism
• Business

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes leisure/tourism and business.

End User Insights:

• Self-Driven
• Chauffeur-Driven

The report has provided a detailed breakup and analysis of the market based on the end user. This includes self-driven and chauffeur-driven.

Regional Insights:

• Southeast
• South
• Northeast
• North
• Central-West

The report has also provided a comprehensive analysis of all the major regional markets, which include Southeast, South, Northeast, North, and Central-West.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Brazil Car Rental Market News:

• January 2025: Moove, a Nigeria-based startup that facilitates vehicle ownership through financial solutions, has acquired Brazilian car rental firm Kovi as part of its plan to broaden operations beyond the African market.
• June 2023: Localiza, Brazil's largest car rental company, completed a follow-on share offering, raising BRL 4.5 billion (USD 935.51 million) specifically aimed at expanding its car fleet and service network across Brazil. This significant capital injection positions the company to strengthen its market leadership and expand operations in response to growing demand in the tourism and business travel segments.

Brazil Car Rental Market Report Coverage:

Key Questions Answered in This Report:

• How has the Brazil car rental market performed so far and how will it perform in the coming years?
• What is the breakup of the Brazil car rental market on the basis of booking type?
• What is the breakup of the Brazil car rental market on the basis of rental length?
• What is the breakup of the Brazil car rental market on the basis of vehicle type?
• What is the breakup of the Brazil car rental market on the basis of application?
• What is the breakup of the Brazil car rental market on the basis of end user?
• What is the breakup of the Brazil car rental market on the basis of region?
• What are the various stages in the value chain of the Brazil car rental market?
• What are the key driving factors and challenges in the Brazil car rental market?
• What is the structure of the Brazil car rental market and who are the key players?
• What is the degree of competition in the Brazil car rental market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Brazil car rental market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Brazil car rental market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Brazil car rental industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.