The Impact of the Top 3 Strategic Imperatives on the Mexican Vehicle Subscription Industry

Transformative Mega Trends

Why

• Mexico presents an ever-growing automotive market, reaching a total of 1.36 million light vehicles sold in 2023.
• The current market, however, is experiencing high prices for new vehicles, which might represent an impediment for many companies and individuals to acquiring cars.

Frost Perspective

• Vehicle subscription can be an interesting model introduced to the Mexican market, where the acquisition and maintenance of vehicles represent significant spending for many customers.
• Expanding awareness of the benefits across potential customers in the next 2 to 4 years can be a large window of opportunity for companies to grow in the market.

Innovative Business Model

Why

• Companies operating in the shared mobility market experienced growth during the COVID-19 pandemic as technology advanced and new competitors appeared.
• With rising vehicle prices, these companies, often start-ups, might find it difficult to be competitive in their own markets, thus reducing growth in their respective areas.

Frost Perspective

• Vehicle subscription can represent a relevant opportunity for companies in the shared market, particularly those in ride hailing, food delivery, and last-mile delivery.
• The acquisition of cars through this model, wherein car companies carry all the extra charges, can directly impact their competitiveness.

Competitive Intensity

Why

• Despite being in a new market in Mexico, start-ups have begun to offer their catalogues to multiple clients, aiming to understand their interests and achieve customer retention.
• Companies with multiple offers have high competitiveness based on pricing, models in their catalogues, types of engine, or the inclusion of used vehicles.

Frost Perspective

• Even though original equipment manufacturers (OEMs) are not currently participating in the market, they have the potential to begin offering a vehicle subscription model in Mexico in the next 1 to 3 years.
• Value-added services and the inclusion of both hybrid and electric vehicles (EVs) in catalogues can be key items to achieve customer retention.

Scope of Analysis

• The vehicle subscription market in Mexico can be considered at a nascent stage. Competitors are experiencing growth and are expected to continue doing so during the forecasted period.
• While the vehicle subscription market in other countries traditionally comprise OEMs, rental companies, and start-ups, the Mexican vehicle subscription market currently comprises mostly start-ups.
• The study analyzes the main companies operating in the vehicle subscription market in Mexico.
• These subscription programs aim to reach a specific set of customers, including companies looking to outsource their fleets and their management, individuals wanting to acquire a vehicle without having any access to credit and expecting a simpler and less complex bureaucratic process, and drivers working in mobility applications.
• Vehicle subscription represents an interesting option for a set of actors, comprising multinational companies already familiar with the service and already aware of vehicle depreciation and simple fleet management, in addition to individuals who want to try EVs without an extended bureaucratic process.

Growth Drivers

Growth Restraints

Key Competitors

• Bentley
• BMW
• Seat
• Cupra
• Porsche
• Audi
• Volkswagen
• Movicar
• BitCar
• Moove
• OneCarNow!
• Mazmobi
• ClikAuto
• Europcar
• National
• Alamo
• F3 Leasing
• Hertz
• Firefly
• Integra
• ALD Automotive | LeasePlan
• CSI Leasing