Vehicle Rentals Surge In Non-Tourist Urban Areas In Mexico

The vehicle rental market in Mexico is experiencing significant growth, especially in urban areas not traditionally associated with tourism, such as Mexico City and Guadalajara. According to Romio, a car rental company, the trend is expanding as residents find renting cars more economical than using taxis or ride-sharing services.

"Renting vehicles fosters sustainable mobility and stimulates the local economy. Renters can generate up to MX$30,000 (US$1,800) extra monthly by leasing their cars”, said David Gómez, co-founder, Romio.

Data from the Mexican Association of Vehicle Rental Companies (AMAVe) reveals that 324,071 vehicles were rented in the first quarter of the year. Of these, 12%, or 38,364 vehicles, were rented on a daily or weekly basis, marking a 4% increase from the previous quarter. AMAVe anticipates a nearly 15% increase in daily car rentals this year, driven by the tourism sector's recovery and the new Tulum airport's operation.

While high tourist destinations like Cancun and Puerto Vallarta report high car rental rates, non-touristic cities are witnessing notable growth. In Mexico City, Guadalajara, and Monterrey, residents are increasingly renting vehicles for short-term needs, such as weekend trips or daily commutes.

Gómez cited Cancun as an example, where renting a car can be more cost-effective than using taxis or ride-hailing services. "In Cancún, the cost of a 10-kilometer taxi ride can range from MX$1,300 to MX$3,000. In contrast, a rental car can be used for up to two days for the same price," Gómez explained. This cost-benefit ratio is driving the popularity of car rentals among both tourists and residents.

Statistics from AMAVe further underscore this trend. The State of Mexico leads in the number of vehicles registered for rental, accounting for 35% of the national total, followed by Mexico City with 14%, and Nuevo León with 7%. However, in terms of daily or weekly rentals, Mexico City tops the list, followed by Cancun, Merida, San Jose del Cabo, and Guadalajara.

Despite the growth in vehicle rentals, the adoption of hybrid and electric vehicles within rental fleets remains slow. Currently, only 3.3% of rental vehicles are hybrid or electric, comprising 9,027 hybrid units and 1,652 electric units. This slow adoption is due to the specialized sales and advisory cycles required for these vehicles, which differ from traditional combustion engine cars.

In 2023, vehicle acquisition for rental purposes increased by 24%, with specialized rental companies representing 5% of total new car sales in Mexico. AMAVe's data shows that 70.4% of the rental fleet operates under a pure leasing model, while financial leasing accounts for 2.1%.