New Delhi: U.S. car rental firm Dollar Thrifty Automotive Group Inc. is looking to grab 10% of India’s car rental and leasing market by 2010, a senior company official said on Wednesday.
The Tulsa, Oklahoma-based company, which owns brands like Dollar Rent A Car and Thrifty Car Rental, named India’s privately-held travel conglomerate Nijhawan Group as their sole licensee in India.
“Ten percent market share is certainly very achievable for a brand,” Yves Boyer, the firm’s executive vice president international, told reporters.
Boyer estimates India’s rental industry at $100 million (Rs405 crore), and said the tie-up would target the corporate sector.
Nijhawan Group will first introduce Thrifty in New Delhi, Bangalore and Mumbai with 110 cars. The group plans to expand the fleet size to 300 by the end of the year, and to service 14 cities within five years.
Nijhawan sees growth in the car rental industry in India being fuelled by higher tourist arrivals and a booming aviation sector, which has seen a raft of new carriers in recent years.
“The 2010 Commonwealth Games and 2011 cricket world cup will ensure that there is space for everyone,” Arjun Nijhawan, the director of Nijhawan group, said.
The Commonwealth Games will be held in New Delhi, while cricket’s next world cup will be hosted by south Asian nations.
Last year, Jet Air tied up with Europe’s leading car rental company Europcar, and German car rental firm Sixt entered India in partnership with Sona Group.
On Tuesday, low cost carrier SpiceJet said it plans to begin car rental services.