The world’s leading car rental and leasing company Avis on Wednesday launched its operating lease service for the Indian corporate service with an investment of Rs. 700 crore spread over the next four years.
The company would prepare a fleet of 7,000 cars for the leasing business while another Rs. 200-250 crore would be spent on its existing car rental service.
Still considered to be in its infancy, operating lease allows companies to provide cars to its employees without directing buying the cars enabling it to avail depreciation benefits.
“We plan to position operating lease as a lifestyle solution wherein the executive enjoys the use of an excellently maintained car with a comprehensive set of conveniences and services included at a low monthly pay-out,” said Karunesh Arya, chief operating officer (leasing), Avis India.
At present, 10% of the over 2.6 million cars sold in India is bought by corporates of which only 10% are leased. That percentage, however, is expected to go up as more players enter the fray in line with the evolution of the market.
It also plans to expand its car rental fleet from the existing 1,500 to 2,500 cars over the next 4 years. “The car rental business is also growing very fast and we have to keep investing in that as well,” said Sunil Gupta, CEO, Avis India. “We will invest around Rs. 200-250 crore in that to expand our fleet and most of the capital will be from internal accruals.”
It also plans to expand its car rental fleet from the existing 1,500 to 2,500 cars over the next 4 years. “The car rental business is also growing very fast and we have to keep investing in that as well,” said Sunil Gupta, CEO, Avis India. “We will invest around Rs. 200-250 crore in that to expand our fleet and most of the capital will be from internal accruals.”