News: Germany's Sixt eyes 10% of India's car rentals

(RTR 26/10/2006) New Delhi - German car rental firm Sixt hopes to win at least 10 per cent of India's car rental and leasing market by 2011, an official said on Thursday.

"We are transferring the know-how of this business (to the Indian partner). In return there are certain royalties and fees on a per centage of turnover," Sixt's vice president, Rudiger Proske, said as the firm marked its formal arrival in India.

"Over the next five years we see at least 10 per cent market share in car rentals business and car leasing business each."

India's Sona Group, which is heading Sixt's foray into India, has been running a rental service through Sona Mobility Services Ltd. for the past 9 months and clients include top mobile services provider Bharti Airtel Ltd., Microsoft, Nestle and Dell.

"The corporate vehicle leasing market in India is currently pegged at Rs 1,500 crore ($331.5 million) and is expected to grow at 30-40 per cent year on year," Sunjay Kapur, CEO of Sona Mobility said.

"In five years we aim for revenues of Rs 1,600 crore from leasing about 35,000 cars and another Rs 400 crore from rentals of 4,000 cars.

The Sona Group's flagship company -- Sona Koyo Steering Systems Ltd. -- 20.47 per cent owned by Japan's Jtekt Corp. and 7.85 per cent by car maker Maruti Udyog Ltd. -- is India's largest steering gears maker with a 45 per cent market share.