Car rental industry facing challenges

By CityNews Ottawa

Posted Jul 6, 2022 09:30:00 PM.

While the airline industry is seeing its fair share of challenges, a vehicle shortage is making things difficult for the car rental sector.

Craig Hirota, vice president of the Associated Canadian Car Rental Operators, told The Sam Laprade Show on Tuesday, July 6 that new vehicle construction is quite constrained, impacting the rental car industry.

In June of 2022, according to Hirota, in June of 2022, auto sales were down 11 per cent month over month from 2021.

“The industry is having a hard time sourcing new vehicles,” he said.

Hirota said car rental companies are running their existing fleet longer because they are not finding replacements as often as they would like. He added that car rental companies are not top of mind for many manufacturers.

“Currently, manufacturers are prioritizing retail demand,” he added. “Supply is slowly improving, but we are still short for the spring and summer seasons.”

Listen to the full interview with Craig Hirota below:

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