32 MANAGEMENT BOARD 2011 ABLA YEARBOOK Booming market By João Claudio Bourg CEO, ABLA The vehicle rental industry’s results get better year after year, and 2010 was no exception at all. In fact, it went beyond all expectations. Growth in the business can be said to have been the best since we began publishing the ABLA Yearbook. The vehicle rental industry rode the coattails of Brazil’s continued economic growth in 2010. Consequently, we have consolidated the growth of the market seen over the last decade. Among the most significant figures is the 17% increase in sales on 2009, and the share of automakers’ sales the sector accounts, standing at 9.4%, meaning that vehicle rental companies remained the leading corporate client in this important industry. The customer base continues to grow and the potential for the vehicle rental market is increasingly evident. From 2003 to 2010, the number of users increased from 8.7 million to 17.7 million, with the industry and service sectors representing the leading profile on the market. To achieve this exceptional level of performance businesspeople in our industry have by no means passively stood by. There has been a great commitment to improving business management, in order to fully satisfy user demands within an increasingly competitive scenario. A recovery in the average price charged by vehicle rental companies has also contributed to the solid performance achieved by the sector. By combating predatory competition from illegal vehicle rental operations, and fostering greater professionalism among the companies involved in car rental, ABLA has contributed to achieving an average fee for the industry of R$ 85. Other indicators of the great progress to be made in the next few years are related to the World Cup and the Olympics, both to be held in Brazil, which will favor tourism and investment in infrastructure to welcome international visitors. According to a recent announcement by the Ministry of Tourism, the plan is to increase the number of tourists visiting the country by 30% by 2016 (today, Brazil is visited by about five million international tourists a year). Irrespective of such specific events, vehicle rental companies are working towards sustainable growth throughout the current decade. This means, among other things, constantly renewing and expanding the fleet, guaranteeing more investment and jobs. In an optimistic economic environment, driven by increasing purchasing power among Brazilians and heavy investment in infrastructure, among other factors, the future is even brighter for Brazil and the vehicle rental segment. With serious application and hard work, these good results will certainly continue to be achieved.
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