Rental car shortage in Portugal

… with Madeira “most affected”

Rental car pick-up at Madeira airport

Press agency Lusa reports on a significant shortage of rental cars in Portugal in general, and notes that this could have a significant impact on the market in Madeira in particular.

After two years of Covid-19 restrictions, rent-a-car companies operating in Portugal are confident in the industry bouncing back but highlight the fact they will not have enough vehicles to meet demand.

The warning comes from ARAC – Driverless Car Rental Industry Association, which claims to represent most of the car rental companies operating in the country.

“This year, the peak fleet of rent-a-car companies in Portugal will not exceed 92,000 vehicles compared to the approximately 125,000 units registered in Portugal in 2019, which will mean that this year the supply of vehicles will be less than the demand”.

ARAC statement

The association stated that there has been “a significant drop in the number of vehicles acquired by rental car companies compared to the previous year and especially compared to 2019 (pre-pandemic crisis year)”, which is due to the fact that the production chains of car manufacturers remain far from pre-pandemic levels.

Lack of semiconductors continues

“Factories continue to have a lack of semiconductors for incorporation into vehicles, and there are currently thousands of produced cars parked waiting for the supply of semiconductors so that they can be delivered”, explains ARAC, who say that car manufacturers are also giving “priority to the most profitable sales channels”, which means that “the channel most affected by this situation” is vehicle rental (rent-a-car, rent-a-cargo and renting).

Therefore, the association appeals to manufacturers not to forget the “determining contribution of rental car companies for several years to the sector”.

Madeira among areas most affected

The association also highlighted that Madeira and the Azores are expected to be the areas “most affected by the lack of vehicles”, followed by the Algarve, Porto and Lisbon.

Despite the problem of the lack of rental cars, ARAC says that companies are optimistic and adds that, “now, that demand seems to be resuming its usual trajectory, Portuguese rent-a-car companies can show confidence in the resumption of activity”.

COVID-19 in Madeira: updates can be found in an earlier post

Rental car shortage in Portugal 1

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3 thoughts on “Rental car shortage in Portugal”

  1. There are many car rentals in Madeira, but they are mostly overpriced. I found a good car rental company that rents only automatic cars, they are called Automatic Car Rentals in Funchal, and they were really great. My car was brand new, hybrid and in excellent condition. There are many car rentals out there in Madeira, you just have to make a good search.

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