Sixt, one of the leading car rental companies of Germany, is looking forward to gain 10% of the total Indian car rental market by 2011. According to the report published in The Financial Express:
"We are transferring the know-how of this business to the Indian partner. In return there are certain royalties and fees on a percentage of turnover," Sixt's Vice-President, Rudiger Proske, said as the firm marked its formal arrival in India.
"Over the next five years we see at least 10 percent market share in car rentals business and car leasing business each," he said.
Rent-a-car has become a big business in India. Four years ago, an unorganized industry of Rs. 30 billion (3000 crore), has turned into Rs. 9,000 crore within four years. The condition of the cars was low and there were no brand cars. Still, the market is unorganized but the scenario has changed a lot. Now, rental companies are promoting branded cars and allowing self drive. Looking at the potential of the market, many foreign car rental companies came to India. Major companies include Europecar Asia pacific and Hertz. Both these companies entered a franchise: Europecar Asia Pacific with Jetfleet Private Limited and Hertz with Vij.
Sunjay Kapoor, CEO of Sona Mobility said that India’s corporate vehicle market is estimated to be $331.5 million and expected to grow 30-40 percent per month. The company is planning to increase its yearly revenue upto 16 billion rupees.
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