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China Auto signs strategic alliance

By Li Fangfang and Cai Xiao | China Daily | Updated: 2013-04-18 10:32

China Auto Rental's 200 percent annual growth rate from 2009 to 2012 is six times higher than the market over the same period, and its more than 50 percent annual forecasted growth rate through to 2016 is more than three times higher than the overall market projection.

"As a result, Hertz is now uniquely positioned among American and European car rental brands to support the rapidly expanding Chinese rental market, as well as China Auto Rental's growth," he said.

"Not only will we be able to fulfill business and leisure rentals throughout the country, we will also provide rental solutions for international travelers to and from China - two markets with strong growth projections."

China Auto has the country's largest network, with 700 locations in 66 cities, and a 50,000-strong vehicle fleet, which is more than four times the size of its nearest rival.

The company said it aimed to expand the fleet to 100,000 units in 2015.

According to international consulting firm Roland Berger Strategy Consultants, China's car-leasing market is expected to grow from $2.5 billion in 2010 to $6.1 billion in 2015.

Statistics also show that since 2005, the value of China's car-rental market has grown by about 30 percent annually.

Lu Zhengyao, China Auto's chairman and CEO, said it has chosen to partner with Hertz because of its "extensive industry experience, advanced technology, strong brand influence and rich customer resources", adding the alliance would "reinforce China Auto Rental's leading position in the sector".

Both sides said they are considering a more effective way of recycling cars and will try and use cars that are no more than two years old.

Industry analysts said the cooperation was another milestone for auto leasing in China.

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