Potholes, hybrids and the Group A shake-up changing car hire in 2026

Most travel policies were written when the roads were smooth, sedans ruled and sustainability was still a distant dream.

Fast forward to 2026, and South Africa's business travel landscape looks a little different. Budgets are under pressure, sustainability mandates are multiplying, and the Group B vehicle in your policy handbook? It doesn't exist anymore – at least not in the way procurement departments remember it.

Welcome to the great corporate car rental shake-up, where service, speed and hybrids are the new non-negotiables – and value matters more than ever before.

The Group A car rental rethink

Group A used to mean bare-bones manual vehicles that nobody actually wanted to drive. Finance approved them because they were cheap. Travellers tolerated them because policy said so. Hertz decided that needed an upgrade.

"Group A is where there's massive competition," explains Julian Visagie, CEO of Hertz Car Rental South Africa. "We said, let's add real value. We now guarantee a Suzuki Swift in that class – automatic or manual, fuel-efficient, feature-loaded. It's now the only vehicle we offer in Group A."

Think about what that means for your travellers: A choice of automatic or manual transmission. A little more space and power. Just a genuinely good car at entry-level pricing.

It's the kind of move that's making corporate account managers rethink what "budget-friendly" can actually deliver. Why lock your team into Group B rates when Group A now offers good value, decent boot space, and all the features business travellers actually need?

"It's changed perceptions and created a shift in the market," Visagie notes. Smart SMEs are catching on: the real savings aren't in booking the absolute cheapest class – they're in booking vehicles that are efficient and safe, yes, but also unexpectedly fun to drive.

SUVs on the menu

If you've driven through Johannesburg lately, you'll know exactly why car rental patterns are shifting. Those aren't just potholes – they're a tyre-destroying, suspension-wrecking reality that residents have to deal with on a daily basis.

According to Hertz, corporate clients are increasingly opting for higher-clearance vehicles. Not for status, but for basic safety and vehicle protection. "More and more clients are requesting SUVs," notes Silvia Labuschagne, Regional Sales Manager - Western Cape at Hertz. “It’s pragmatic. People feel safer in SUVs.”

The trend is particularly visible at major airports like OR Tambo or Cape Town International, where business travellers are actively requesting vehicles that can handle South Africa's road conditions, without compromising safety or comfort.

The sustainability sweet spot (aka hybrids for the win)

Until recently, corporate sustainability policies and rental budgets were in an awkward standoff. Procurement wanted green vehicles, finance wanted Group B pricing, and hybrids sat somewhere in between: desired but pricey. That's shifting. Hertz was the first car rental company in South Africa to introduce the Toyota Corolla Cross Hybrid, and it’s now a flagship vehicle.

"A lot of corporates have sustainability policies in place," Labuschagne confirms. "The challenge has been rental policies capping spend at Group B, and hybrids sit in a higher class. But progressive companies are updating their policies to meet sustainability mandates and support environmentally conscious travellers, which means hybrid car rental is taking off.”

Looking ahead, Visagie is eyeing full electric vehicles.

"The rest of the world adopted electric quickly, but hard lessons were learned. For example, travellers flying into a new destination don’t know the lay of the land. They don’t know where charging stations are located, or how long an unfamiliar EV’s range might be. Hybrid vehicles are bridging full EV adoption hesitation,” explains Visagie. “But South Africa's charging network is improving quickly, so we'll definitely look at introducing full electric, possibly even next year."

Value, service and a human touch

While the international car rental market races toward self-service kiosks and QR code pickups, South Africa still values something different: actual human interaction.

"In the international space, the focus is on self-service," explains Visagie. "People want to pre-register, get off the plane, go to an ATM-type kiosk, punch in a code and grab their keys. South Africa isn't quite there yet. South Africans still like the personal touch – speedy bookings and pickups, but with someone there to pair the Bluetooth if needed!”

For Hertz, personal touch goes hand-in-hand with tangible value: a young fleet capped at 12 months old, 24/7 car rental support whenever something goes wrong, Hertz Gold Service, and zero damage liability for extra peace of mind.

Vehicle leasing for business

The biggest shift in Southern Africa's car rental landscape? Long-term car rental. In other words, companies ditching vehicle ownership for flexible rental arrangements.

That’s right, instead of buying fleet vehicles, more and more SMEs are opting for month-to-month or long-term leasing – even committing to 2-5 year leases with full maintenance plans and no exit penalties (negotiated up front) when business needs shifts.

It's fleet management without the ownership headaches and it's catching on fast.

What smart companies are doing differently in 2026

The businesses winning at corporate travel in Southern Africa are:

Auditing and updating their corporate travel policy.

Those 2010-era guidelines mandating "Group B only" have been reviewed, updated and aligned with actual vehicle availability and business needs in 2026.

Calculating total cost.

Instead of fixating on daily rental rates, they're looking at safety, service and overall value.

Looking for strategic, long-term partners.

Rather than chasing the cheapest rate, they're building relationships with trusted providers that offer diverse fleet options, guaranteed vehicle standards and 24/7 support.

Embracing flexibility.

Monthly car rental or long-term rental arrangements are replacing traditional fleet ownership for the right use cases, improving balance sheets and operational agility.

Prioritising safety

Despite the ease and popularity of e-hailing, many SMEs still opt for traditional business car hire, especially for solo woman travellers, late-night airport pick-ups or travel to unfamiliar areas.

Going hybrid.

SMEs dipping their toes in the 'electric vehicle car rental' pool while making responsible environmental choices that satisfy both sustainability mandates and practical travel needs.