Financial Daily from THE HINDU group of publications
Saturday, Jan 07, 2006


Group Sites

Corporate - Diversification

Sona group to diversify into car rental, leasing biz

Neha Kaushik

New Delhi , Jan. 6

THE Sona group, a leading automobile components maker, is all set to foray into the car rentals and leasing domain through a new division called Sona Mobility Services.

The group has tied up with SIXT, one of Europe's largest firms in the car rentals space, for the same.

Mr Sunjay J. Kapur, CEO of Sona Mobility Services, said: "We will initially be investing about $15 million. While we have already acquired a fleet of cars and appointed 50 chauffeurs, this would be scaled up to 500 cars in the first year. We are looking to achieve break-even in a year."

The fleet would consist of cars ranging from Indicas to Toyota Camrys. The company has already appointed a COO - who has joined from SIXT in the Netherlands - for the new division.

The company will formally launch the new operations during the forthcoming Auto Expo in Delhi, which is starting on January 12.

The Sona group would be looking to leverage upon SIXT's global tie-ups and would initially be targeting German companies familiar with SIXT. The $3-billion SIXT has alliances with companies such as Lufthansa, KLM, and Siemens, among others.

Being the master franchisee for SIXT in India, the Sona group would also be developing its own sub-franchisee network in all other regions excepting the North.

The car rentals space in India is currently worth Rs 9,000 crore, with 90 per cent in the unorganised segment.

"People are increasingly demanding premium, standardised service, which is missing right now. We have in-house etiquette training programmes for our chauffeurs. We are also investing in IT in a big way, including implementing GPS and allowing real-time booking of vehicles," Mr Kapur said.

More Stories on : Diversification

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SSI in takeover mode

Lupin looking to strengthen paediatric product basket in US
Michelin's `radial' plans hinge on demand
Lenovo clarifies
NCC allots shares under GDR green shoe
Nelco now subsidiary of Tata Power
Nelco stock dips
SEBI hopes to get full picture on Clause 49 compliance in 15 days
Bluplast on expansion mode
Adidas' Apache to set up Rs 500-cr facility in AP
Strike at AP Paper Mills unit
Jaypee, Shree Cement, Birla Corpn in fray for SAIL's Bhilai venture
GVK Bio, Dai-Ichi form jt venture
Shasun ties up with French pharma co
Sona group to diversify into car rental, leasing biz
Falcon Marine Exports poised for growth
Keki Dadiseth to join Goldman Sachs

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line