Legend Holdings confirms capital injection into China Auto Rental
- Source: Global Times
- [14:56 August 09 2010]
- Comments
Lu Zhengyao, CEO of the CAR
Legend Holdings, a Chinese investment holdings company in IT, investment, and real estate, confirmed on Sunday that it will invest a large amount of capital into China Auto Rental (CAR). By doing so, the company will become a strategic shareholder of China's biggest auto rental company.
"This partnership with Legend Holdings will lead in the development of CAR in scale efficiency, brand power and customer service", Lu Zhengyao, the CEO of CAR said.
The capital investment is to bring fundamental changes to the domestic rental market as well and principally to CAR which will be able to further enlarge its market share by means of cost reduction.
"CAR plans to expand its fleet size to 10,000 units in the coming two to three months and we are confident to lead rental prices to its market standard", said Lu.
In addition, Lu also said that is the right time for the effectuation of large investments in the industry. Also its (industry) market size goes up to billions of yuan.
According to data, auto rental customers rose 14.2 percent in 2009 compared to that of in 2006. However, the high costs of the rentals tie the industry to a slow growth trend.
