Avis India, a partly-owned company of
Avis Budget Group, Inc.
), proceeded on its previously announced expansion plans with the
opening of its first rental location in Vadodara, Gujarat. With
this, the company has increased its services to 20 cities and 45
rental locations in the world's third-largest economy.
Last year, in June, Avis India announced that it would invest
700 crores in the next 3-4 years toward expansion of rental
locations and purchase of 7,000 vehicles on operating lease.
Avis Budget debuted in India 14 years back, when the company
formed a JV with The Oberoi Group - Asia's leading hospitality
company. At present, Avis India has nearly 2,000 premium cars in
India with locations in major downtown areas and industrial hubs.
The company also provides pick-up and drop-off services to and
from major airports and railway stations in the country.
Avis Budget, which competes with
JTH Holding Inc
), stepped on the Asian continent in 1970, when it opened the
first car rental center in Hong Kong. In 1972, the company
launched operations in Singapore, the Philippines, Malaysia,
Indonesia, Brunei, Pakistan and Sri Lanka, thereby marking its
expansion in the continent.
Since then, this Zacks Rank #3 (Hold) company has largely
increased its footprint in the Continent., expanding operations
in 18 markets including India, Mainland China, Vietnam and
Taiwan. Moreover, the company has a presence in over 300
locations in Asia, where it provides effective vehicle rental,
vehicle leasing and limousine/premium chauffeur services through
a network of wholly-owned subsidiaries, JVs and licensee
At present, Avis Budget is expanding its operations through
acquisitions and collaborations. The company is also investing in
other booming markets where car rental demand is on the rise.
This is well evident from Avis Budget's latest move.
Apart from this, in March, Avis Budget successfully completed
the acquisition of the world's leading car sharing network
company, Zipcar Inc. This strategic move has enabled the company
to extend its offerings from car rental to car sharing, thereby
helping it to compete with peers like
United Rentals, Inc.
Hertz Global Holdings, Inc.
Furthermore, Avis Budget formed a partnership with
PortAventura - a popular theme park and resort in Spain - and has
opened car rental units this year in Spain and the Asia Pacific.
We believe that such strategies, combined with better customer
support systems, will boost the company's top line and
AVIS BUDGET GRP (CAR): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
JTH HOLDING INC (TAX): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
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