Localiza tops 1 million digital rentals and buys BYD cars

Brazilian car rental company Localiza reached more than 1 million digital rental contracts, where customers reserve via the app and pick up vehicles without human contact. The company is leaning into what CEO Bruno Lasansky describes as new mobility, despite high interest rates in Brazil that raise fleet acquisition costs.

Localiza posted an annualized return on capital of 15.5%, providing a 5.5 percentage point margin over its cost of debt. Lasansky stated that the company restored its tariffs without slowing demand, balancing gradual price adjustments with higher vehicle utilization and productivity gains.

To counter pricing pressures on used vehicles caused by cheaper new cars and the influx of Chinese brands, Localiza sells over 90,000 used cars per quarter through its proprietary retail network. The company also agreed to purchase 10,000 hybrid and electric vehicles from Chinese automaker BYD over two years, allocating them across its rental, subscription, and used-car divisions.