Business Daily from THE HINDU group of publications
Sunday, Jun 25, 2006
Business Daily from THE HINDU group of publications Sunday, Jun 25, 2006 |
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Corporate
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Diversification Hertz enters leasing biz Neha Kaushik
New Delhi , June 24 Sighting synergies with its rentals business and immense growth potential, car rentals major Hertz has entered the leasing business in India. The company has rolled out Hertz Lease for corporates/institutions, which enables them to take cars on operating lease basis for their employees instead of buying them. According to Mr Rajiv K. Vij, CEO, Hertz India, the company has already built up a portfolio of 600 cars and 12 clients for the leasing business and expects the leasing business to be larger than the car rentals business within the first year.
Huge potential
"We expect to have around 3,000 cars in the first year itself. This market has a huge potential as companies find it easier and more economical to take cars on an operating lease basis", Mr Vij said. The company's car rental business is expected to increase to 1,500 cars by the end of this year. Currently, annual corporate purchases of cars is estimated at about 50,000 units, of which only 4,000-5,000 cars are taken on an operating lease basis. More and more companies are entering this segment, which till recently only had 2-3 major players such as Leaseplan.
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