HERTZ is to establish a presence in China after signing an agreement with a joint-venture company to set up franchises around the country’s major cities.
The move follows Europcar’s co-operation agreement with Chinese car-rental group Shi Ji Tong, to establish the brand throughout China.
China is fast becoming the next emerging market for car rental with Avis also looking to establish a presence. The company is planning expansion into Asia, signified by recent licencee agreements in Japan and India, and says it will be considering China in the new year.
Hertz has signed a letter of intent with China National Auto Anhua (Tianjin) International Trade Company and car-rental operations are scheduled to begin in 2000 in Beijing, Shanghai, Tianjin, Guangzhou Province and Xiamen with an initial fleet of several hundred vehicles. The new licence will offer chauffeur driven, self-drive, short term and long-term rentals.
A spokesman for Hertz said: “We believe China has huge potential in the business car-rental market. There is a massive amount of business activity, especially in the cities we are establishing bases in and we feel that is going to expand further. It really makes sense to be there.”