Rent-a-car services in the Autonomous Region of Madeira generated 87.1 million euros in revenue in the first nine months of 2025, reflecting a clearly positive evolution throughout the year, according to data released today by DREM.
According to the Regional Statistical Authority, the quarterly progression shows sector strengthening: from 17.0 million euros in the 1st quarter to 30.5 million in the 2nd quarter and up to 39.6 million in the 3rd quarter, very much in line with the increase in demand throughout the year. Between the first and third quarters alone, revenue more than doubled, following the peak of the tourist season. It is therefore expected that the numbers will fall in the 4th quarter, when demand and tourism are lower.
DREM stresses that the basic rental service accounted for 80.1% of total revenues, corresponding to 69.8 million euros in the period under review, showing that the main share of turnover continues to be concentrated in standard rental, with a lower relative weight of complementary services.
Between January and September, 342,937 contracts were signed for the rental of vehicles without a driver. The number gradually increased throughout the year: 102,876 contracts in the 1st quarter, 117,606 in the 2nd quarter (+14.3%), and 122,455 in the 3rd quarter (+4.1% compared to the previous quarter).
The average rental duration stood at 6.2 days in the nine months accumulated. Here too, there was a progressive growth: 5.8 days in the 1st quarter, 6.1 days in the 2nd quarter, and 6.5 days in the 3rd quarter, indicating longer stays during the high season.
The available fleet also followed the growth trend. After registering 10,789 vehicles in the 1st quarter, it increased to 13,008 in the 2nd quarter (+20.6%), stabilising in the 3rd quarter at 13,255 vehicles (+1.9%).
In the same period, rental services accounted for 339,477 customers, also on an upward trajectory: 97,440 in the 1st quarter, 117,901 in the 2nd (+21.0%), and 124,136 in the 3rd quarter (+5.3%).
Finally, the trend by market, with Portugal (19.7%) and Germany (19.1%) leading as the main customer source markets, followed by France (10.4%) and Poland (9.6%). Interestingly, the British, who are the second largest foreign market in terms of tourism, are not so prevalent in the car rental market, possibly due to adapting from right-hand drive to left-hand drive whilst navigating Madeira’s twisty, narrow roads.
The data confirms a robust performance of the rent-a-car sector in Madeira in 2025, supported by the growth in tourist demand and the reinforcement of installed capacity.
The comments section of the article proved interesting reading, with many lamenting the increase in road traffic, the number of accidents recorded, and the inability to visit places of interest due to high tourism and ‘wild parking.’
Samantha Gannon
info at madeira-weekly.com
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