The Hertz Corporation increased its presence in China, which is one of the fastest-growing areas of the world for car rentals, by buying a huge piece of the popular Chinese car rental company CAR Inc. in 2013. Then on Sept. 19, CAR Inc. launched an initial public offering on the Hong Kong stock exchange. Due to this listing, the Hertz Corporation is poised to increase its presence in this area, and used this huge announcement to drive home the fact that it’s co-branded with CAR Inc. at many locations.
When the Hertz Corporation acquired 19 percent of CAR Inc. in April 2013, the partnership meant that a number of locations in China co-branded with both Hertz and CAR Inc. According to reports from CAR Inc., Hertz is co-branded at just over 600 CAR Inc. locations in China. As a result, this has given the Hertz Corporation a significant presence in the Chinese market, which is where most car rental companies are trying to expand.
The CEO of Hertz, Brian MacDonald, said that the investment into CAR Inc. was a very strategic one. It conveys the confidence that Hertz has in the fact that CAR Inc. is one of the most successful and trustworthy brands in all of China. CAR Inc.’s IPO is a milestone for the company and will help solidify it as the leading car rental company in the country.
The growth that CAR Inc. has seen over the years has been truly impressive. The company started with a fleet size of just 25,845 in December 2011. By June 2014, the company had more than 52,498 vehicles in its fleet. The consumer base for this company has also grown from 450,000 to just more than 1.9 million during the same time period.
There are many things to contribute this growth to. One is that there has been a huge surge in the number of leisure and business travellers coming to China. There has also been an increase in the number of Chinese citizens that have a driver’s license but don’t own a car. This is because the Chinese government has really cracked down on the number of cars people can own.
The senior vice president of global strategy for the Hertz Corporation, Naren Srinivasan, said that there is a lot of potential for growth in China. CAR Inc. is a great company to get involved with to gain access to this potential. As CAR Inc. continues to grow its fleet, it will continue to thrive in this upcoming market.