Germany-based car rental company Sixt set a new record for annual revenue in 2023, despite a “significant deterioration in market conditions for e-mobility”.
The company achieved revenue of more than €3.6 billion last year – up by 18 per cent on 2022, which was itself a record year for sales.
Sixt said this result had been achieved despite demand for electric vehicles (EVs) not yet developing the “momentum desired by politics in many places”, as well as falling prices for used EVs.
Revenue from Sixt’s domestic market in Germany increased 23.6 per cent compared with 2022 to nearly €1.1 billion and accounted for 29.9 per cent of total revenue, while the European market outside Germany was up 14.3 per cent to nearly €1.5 billion making up 40.4 per cent of revenue.
Sixt reported a pre-tax profit of €464.3 million in 2023, which was the second-best result in the company's history but was still down by 15.6 per cent compared with 2022’s profit. The company also expanded its fleet in 2023 to an average of 169,100 rental vehicles, up by 22.2 percent year-on-year.
Co-CEO Alexander Sixt called the company’s results “remarkable” considering the worsening market conditions for electric vehicles, rising interest rates and its “high levels” of investment.
Electric vehicle challenges
Sixt added that the falling value of used EVs had led to “increased depreciation and losses from vehicle sales”, leading to a negative impact of around €40 million in 2023.
At the same time, lower demand for EVs compared with petrol and diesel-powered vehicles "resulted in a substantial loss of revenue".
Sixt has responded to these challenges by bringing "forward significantly" the phasing out of electric “risk” vehicles, which are those EVs with no buyback or leasing agreements.
The company added that EVs will “continue to make up part of the Sixt fleet in the future”, although further developments will require “a high degree of flexibility".
Sixt's EV challenges echoed similar statements from Hertz, which has decided to sell 20,000 of its EVs in the Americas region. A recent survey by travel management company BCD also found that only around 20 per cent of business travellers globally are currently renting EVs.