Shortage of new cars triggers crisis for rental companies in Brazil

Revenue from sales of used cars is expected to drop in the coming months, with maintenance costs growing in parallel.

RIO DE JANEIRO, BRAZIL - Car rental companies are experiencing a more difficult year than imagined. Due to delays in deliveries from automakers, revenue from sales of used cars will drop in coming months, with maintenance costs growing in parallel, due to the fleet's increased age.

To preserve cash, rental companies have readjusted long-term contracts, but the sustainability of this pricing policy should be limited.

Since last year, the automotive industry has been facing parts shortage issues due to the severity of the Covid-19 pandemic. As a consequence, automakers have been delaying deliveries of retail and wholesale orders . . .

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