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 ¨C 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.