Dulce María Florit

Sergio Rubio
 CONTENTS
MACROECONOMIC CONTEXT:

Main macro-magnitudes affecting car rental companies

in Spain and Europe.

MICROECONOMIC CONTEXT:

Sixt, origin of the firm, business model, analysis of the

competition in the sector, competitive model...

TOURISM POLICY

International and national policies affecting the

company.

CONCLUSION
01
Main Macro-
Magnitudes

ECONOMIC GORWTH,
UNEMPLOYMENT, TAX AND
REGULATORY POLICIES
Economic growth: Directly affects the demand for car rental

Unemployment: The level of unemployment influences people's ability

to pay for car rental services.

Tax and Regulatory Policy: Changes in tax policy, such as excise or

vehicle taxes, can affect the operating costs of car rental companies.
02
Main Macro-
Magnitudes
TOURISM
INFRASTRUCTURE AND PUBLIC TRANSPORTATION
EXCHANGE RATE

Tourism: The number of tourists visiting the country directly

affects the demand for car rentals.

Infrastructure and Public Transportation: The quality of

infrastructure and public transportation can influence the
demand for car rental.

Exchange Rates: especially if a large part of their business

involves international transactions
03
SIXT
Mr. Erich Sixt took over the company in 1969
when the company already had almost 200 cars
(today it has more than 240,000 cars, most of
them of German manufacture). From that date
until today, Erich Sixt has managed to put the
company in a very enviable position. Sixt has
become a blue chip.
WE TRANSFORM THE
WAY THE WORLD
MOVES.
This family-owned company saw how profits
would be higher by working primarily in the
premium car rental market. This yielded higher
profits per unit rented than any of its competitors'
rental car companies.
 RANGE OF SERVICES

SIXT RENT SIXT TRUCK SIXT SHARE SIXT + SIXT RIDE

Groups together In addition to car rental, The company offers a Is the solution Services with driver. It
activities in the field since 2021 Sixt offers a flexible car sharing launched by the Group offers corporate
of traditional car wide selection of service, which allows in 2020 for customers customers the
rental, which remains commercial vehicles under the return of the who do not want to be advantage of a simple
the core of the the SIXT truck product. vehicle even outside tied for years to and uniform billing
business model. defined business purchase or lease. system.
regions.
05
COMPANY VEHICLE MODEL PRICE PER DAY

Business Strategy SIXT OPEL CORSA 49,25€

and Competitive AVIS RENAULT CLIO 47,33€

Differentiation
EUROPCAR OPEL CORSA 35,36€
INNOVATION IN THE CAR RENTAL
INDUSTRY
Sixt is known for its innovative approach in the GOLDCAR OPEL CORSA 25,68€
car rental industry.

RECORD RENT A CAR OPEL CORSA 22,78€

DIVERSIFICATION OF SUPPLY
Sixt has increased its product range in order to
enhance and improve the customer experience
HERTZ PEUGEOT 208 35,25€
and reach more customers.

QUALITY OF COSTUMER SERVICE CENTAURO FORD FIESTA 45,05€

The company focuses on providing excellent
customer service, both in terms of vehicle
quality and customer care throughout the ENTERPRISE SEAT IBIZA 41,64€

rental process, and does not try to

differentiate itself from other companies OK MOBILITY PEUGEOT 208 18,50€
through lower prices.
06
Business Strategy
and Competitive
Differentiation
GLOBAL EXPANSION
ixt has pursued very aggressive and risky global

PÁGINA 8
expansion strategies, establishing a presence in
numerous countries around the world, making it the
fastest growing car rental company in the world.

FOCUS ON SUSTAINABILITY
Sixt has shown an interest in sustainability and has
begun to include electric vehicles in its fleet in some
markets as part of its commitment to environmental
responsibility.
07
Analysis of the
Sector
Competitiveness
COSTUMER BARGAINING
POWER AND BARGAINING
POWER OF SUPPLIERS
The bargaining power of customers in the car
rental sector in Spain and Europe is significant.
Customers have access to a wide range of
options and can easily compare prices and
services through the internet and comparison
platforms.
The bargaining power of suppliers in the sector
is moderate. Companies depend on automobile
manufacturers to purchase and maintain their
vehicle fleets. However, because rental
companies purchased a large number of
vehicles, they have some bargaining power to
obtain discounts or favorable terms.
RIVALRY AMONG
COMPETITORS
The car rental market is dominated
both in Europe and in Spain by several
international companies, such as Sixt,
Hertz, Avis, Enterprise... Competition is
intense, especially in tourist areas and
major airports. Companies compete in
terms of prices, quality of service,
THREAT OF ENTRY BY
availability of vehicles, pick-up and
NEWS COMPETITORS drop-off locations...
Barriers to competing effectively are
high, as significant investment in
vehicle fleet, infrastructure, technology
and marketing is required to establish
a competitive presence in the sector.
Established brands have advantages
in terms of brand recognition and THREATOF SUBSTITUTE
customer relationships.
PRODUCTS
The threat of substitute products in
the car rental sector in Spain and
Europe is significant. Ridesharing
services, such as Uber or Cabify, as
well as public transportation, such as
trains and buses, are viable
alternatives to car rental, especially in
urban areas.
 OPERATING

08
NAME LOCATION MARKET SHARE
INCOME
Competitive Model in
wich Sixt Fits Beter EUROPCAR Madrid 315.061.000 9,74%

SIXT Palma 222.093.000 6,68%

FEW DOMINANT COMPETITORS
Only a few competitors dominate the market
Sant Joan
both nationally and globally, including companies GOLDCAR 205.014.000 6,34%
such as Sixt, Goldcar, Avis and Europcar. d’Alacant

SIGNIFICANT BARRIERS TO ENTRY AVIS Madrid 197.099.000 6,09%

As mentioned above, the barriers to entering the
market in a competitive position are very high.
Castelló de la
RECORD GO 165.419.000 5,11%
DECISION INTERDEPENDENCE Plana
Changes in pricing, fleet expansion, marketing
strategies and other moves by a company such as PROA RENT A CAR Manacor 158.235.000 4,89%
sixt can influence the decisions of other
companies in the industry, and vice versa.
HERTZ Las Rozas 146.385.000 4,52%
PRODUCT DIFFERENTIATION
This creates a situation where companies
CANARY ISLAND San Bartolomé 127.997.000 3,95%
compete with each other, but also have some
market power due to customer loyalty to their
specific brands. CENTAURO Finestrat 80.675.000 2,49%
INTERNATIONAL POLICIES
AFFECTING THE COMPANY
The decision taken by the European Union in 2023
prohibiting car brands from selling gasoline and
diesel vehicles from 2035 onwards. This decision
has a great impact on all companies in the car
rental sector, as from that year they will no longer
be able to buy gasoline or diesel cars.
Another policy affecting these companies is the
European Union's Sustainable Growth Financing
Action Plan, which seeks to redirect capital flows
towards sustainable investments and ensure
market transparency. To achieve this goal, the
Commission called for the creation of an EU
classification system for sustainable economic
activities (EU Taxonomy). This is an important
legal instrument to enable and expand sustainable
investments and thus implement the European
Green Pact.
Although it is not a policy that directly affects the
company, we believe that in a more indirect way it
may have consequences for the company. We are
talking about the Low Emission Zones that are
being created by the Spanish government to
prohibit the circulation of cars without the ECO
label. For example, as of January 1, 2024, the
circulation of cars without the ECO label will be
prohibited on all urban public roads within the
M30 in the municipality of Madrid. These types of
policies, although they do not affect Sixt directly,
they do affect it indirectly and force it to renew its
fleet in these places, since otherwise the demand
for cars will fall a lot because nobody wants a car
that cannot circulate.
NATIONAL POLICIES
AFFECTING THE COMPANY
10
CONCLUSION

One thing we would like to emphasize is that

both Sixt and all the companies in this sector
are going to face great challenges in the
coming years due to the technological
advance towards electric vehicles, and it will
be a great effort especially for all those
small companies that have fewer resources
than large firms like Sixt. We believe that it
may lead to an increase in the market power
of these large companies and although
today it is a very profitable sector, its future
is uncertain and will depend on where
tourism and the economy evolves.
Thank you for listening