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Renting a car 'greener' than owning

By Wang Ying (China Daily)
Updated: 2009-12-22 07:48

In Europe, Avis rental cars are readily available at locales including airports and railway stations.

As world leaders gathered in Copenhagen to discuss a new pact to slow climate change, an innovative and simple idea has been raised to lessen greenhouse gas emissions - renting, instead of owning, a car.

"Renting a car when people need it might be a better choice to help the climate and the planet," said Pascal Bazin, CEO of Avis Europe.

Avis, the biggest provider of car rental services in Europe, Africa, the Middle East and Asia, holds a very positive view on the future of the Chinese market, said Bazin.

He noted the company is growing at an annual rate of 25 to 35 percent, showing there is a robust demand. "Avis is ambitiously expanding its service locations from the current 30 to up to 110 by 2012," Bazin said.

China, the world's fastest-growing large economy and biggest car market, has a huge potential for the car rental businesses.

"One of the things we are maximizing in China is how to deliver good quality of service. We will continue to give very good service, as we offer around the world, to Chinese individuals as well as Chinese business persons," said Bazin.

Car rentals have been often used in Western countries for both business and leisure travelers.

Reducing emissions

Avis helps its clients reduce their carbon footprint by working with manufacturers to add lower emission vehicles to its fleet, as well as increasing the number of diesels. Renting a car also helps people save money and other resources during the economic slowdown.

Avis provides three types of car rental services: long-term leasing, short-term leasing and leases with chauffeur service.

Figures from Avis show that in China, people are still not accustomed to renting cars for convenience and lower maintenance cost.

According to Bazin, 80 percent of the company's clients in China are corporate customers, with only 20 percent individual clients.

"In most other countries, individual and business customers are a 50-50 share. I think China will follow the trend in the future," added Bazin.

Avis' service in Europe can provide customers their cars within three minutes. Once a customer has filled out information online, the same client need not go through all the paperwork again and can get a leased car in less than three minutes, said Bazin.

He noted that such service will not be offered in China very soon because its car rental market is still underdeveloped.

"In Europe, in one airport in the morning, Avis can do 400 to 500 rentals within an hour. No Chinese airport is at that point yet, but it will come," Bazin said.

Avis in China

The company's 30 service locations in 19 cities, including Beijing, Shanghai and Guangzhou, employ more than 1,600 drivers and offer more than 3,800 vehicles their combined fleet.

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Avis was established in 1946, and it currently has branches in 174 countries around the world with more than 5,000 outlets and over 19,000 employees. The US-based company has more than 500,000 cars that are rented 20 million times every year.

Its only presence in China is Anji Car Rental & Leasing Co Ltd, a joint venture established between Shanghai Automotive Industry Corp (SAIC) and Avis Europe, in which each hold 50 percent. SAIC is one of the top automotive groups in China.

The partnership put together the best resources of the two companies. SAIC has very good knowledge of Chinese market, and is one of the biggest car manufacturers in China and the world. Avis is a worldwide leader with deep experience in car rental, but no experience in China.

"We put these together and over the seven years the cooperation has been working very well," said Bazin.