HM Motor Group (新苗汽車) yesterday announced that it was beginning operation of its rental car division, Avis Taiwan, under a partnership with Rent A Car System LLC, the world’s leading car rental brand, putting Taiwan on Avis’ world map, which consists of 175 countries and more than 5,200 service centers.
“We are proud and happy to finally include Taiwan in Avis’ worldwide service network that executes more than 20 million car rental transactions a year around the world,” Avis Taiwan president Andy Peng (彭仕邦) said.
Taiwan has a fragmented car rental market with more than 800 rental companies, each with an average of 20 cars, while in the US the big five car rental companies have more than 95 percent of the market share, Peng said, adding that there are plenty of chances for local car rental services to integrate.
The top two operators, Easyrent (和運租車) and Carplus (格上租車), have a combined share of 30 to 40 percent of Taiwan's 30,000-unit car rental market, while the third placed company, an affiliate of BMW Taiwan, accounts for only 4 percent, according to Avis Taiwan.
Peng said he expects that Avis Taiwan will have a fleet of at least 200 cars within a year, adding that it would become one of the top-three rental car operator in Taiwan within five years.
Avis Taiwan managing director Rhett Ho (何懷洋) said the company, which plans to provide services according to customers’ needs, including chauffeur service, has been in talks with automakers and car dealers to form strategic alliances on car purchase and maintenance deals.
For example, Avis Taiwan has signed an agreement with Mercedes-Benz Taiwan Ltd and a cooperation pact with Chung-Hsin DoDoHome (中興嘟嘟房), the top parking brand in Taiwan, Ho said.
“As I speak, the first Avis service center in Taiwan is now operating at the Chung-Hsin DoDoHome’s flagship station at the Taiwan Tauyuan International Airport,” Ho said.
The company will also look for opportunities to cooperate with other industries, such as airlines, hotels, restaurants and banks, to provide more thorough services and added value, he added.
Avis opened its first operations in Asia in 1970 in Hong Kong and grew steadily in the region by launching operations in Singapore, the Philippines, Pakistan, Malaysia and Indonesia.
More recently, Avis has launched operations in India, China and Vietnam.
Additional reporting by CNA