The Brazil automotive industry continues to grow—following a recovery in 2017—after years of declining vehicle registrations due to the region’s economic and political turmoil. The operational leasing or long-term rental segment has grown over the last four years in Brazil by addressing the mobility needs of corporates; it is now dominating the company car market as the preferred funding method. Therefore, creating differentiated offers with high value-addition will be critical for success in the next five years. Economic revival places Brazil in the best place for international companies to invest in bringing new mobility solutions to customers.

Vehicle leasing is seen as a solution to the growing number of mobility-based challenges faced by companies; these include challenges associated with vehicle funding, fleet maintenance, and residual risk handling. Businesses in the present market are focused on their core products and services and seek to outsource all other support activities. Mobility is an extensive market, covering fleet purchase to remarketing at a competitive price; furthermore, in each segment in the value chain (unless an expert team is on the job) issues such as cost spikes, utilisation mismatches, irregularities in fleet maintenance, and risks of dips in residual value can crop up.

Leasing the fleet enables hassle-free mobility, on-demand mobility, and fleet after-service facilities, amongst other benefits. This has driven the growth of the leasing market, given it a structure, and regulated the ecosystem. This study sheds light on market size across passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales and parc data for the total market and fleet and company-car (true fleet) segments. The company car segment is discussed in detail, with a focus on the actual development and the growth potential of financial leasing, operational leasing, and outright purchase.

The analysis also takes into account historical data and current market conditions and insights and opinions from market participants to provide a five-year outlook on growth opportunities (2018–2023). In addition to market data (PV and LCV) for new registrations and portfolio, the study provides actual competitor data (portfolio) for the leading leasing service providers in the country. Competitor data is available for both the leasing segments (operational and financial) for the base year, 2018.

The evolution of any industry depends on factors such as transformational trends, which in turn are linked to the macro-economic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rental, car sharing, integrated mobility, and alternative powertrain. The study covers the evolutionary trends that are expected to shape the market. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives, which will aid in their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space (region-specific) and offers a detailed account of the key trends, market overview, and outlook.