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Carzonrent to invest Rs 400 cr in 5 yrs

Last Updated 07 March 2015, 18:53 IST

Car rental major Carzonrent India (CIPL) has rolled out plans to invest around Rs 400 crore over the next five years, as it pushes towards expanding its self-drive business.

According to Carzonrent Executive Director Sakshi Vij, “Self-drive is the next engine of growth for travel in India. With growing individualism and a spurt in the ‘my space’ phenomenon, we recently introduced Myles, our self-drive option for discerning users.”
Carzonrent’s self-drive brand — Myles — is geared towards fostering a new format in urban mobility.

The concept of self-driving (not be confused with driverless cars) simply refers to hiring a car — usually with fuel — and driving it yourself. The idea has witnessed immense traction in India in the last one year, with many players adopting it. Even CIPL has experienced such quick success in the self-driving model that within a year of launching Myles in Delhi, Mumbai and Bengaluru, with just 14 cars, it has expanded to 800 cars in 20 cities, Vij said.

With the current plan to infuse Rs 400 crore on track, the company plans to ramp up its fleet to 40,000 Myles cars, to cater to the burgeoning demand, she added.

Luxury car services

Apart from Myles, the company has a three-year expansion strategy to take the fleet size of its chauffeur-driven cabs to 100,000 cars that will include expansion in the EasyCabs fleet for the retail segment, as also its corporate fleet Carzonrent. 

“With EasyCabs, we are planning to foray into 50 cities. Regarding the Carzonrent premium car service, we will grow our fleet in the luxury car services segment to 10,000 cars in the next one year,” Vij told Deccan Herald.

The car rental business in India is rather unorganised, having few established players. The Indian taxi market is pegged anywhere between Rs 36,000 crore-Rs 54,000 crore, of which only 4-6 per cent is organised. “CIPL occupies around 22 per cent of the organised space and is growing at a steady rate of 30 per cent each year, which is much higher than the average 13 per cent industry growth rate,” Vij claimed. 

CIPL is present in 145 countries across the globe. In India, it operates in 65 cities, 10 airports, major railway stations, and prominent hotels and malls. At present, its diversified fleet of cars includes models from across segments (utility to premium) and makes.


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(Published 07 March 2015, 18:53 IST)

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