Sunil Gupta, CEO & MD Avis India talks to Ritwik Sinha explaining what it takes for the upscale global car rental company to manage logistics arrangements for seamless operations. He also highlights at the near and medium run milestones which the company has set for itself. Edited excerpts…
For an upscale car rental service provider like Avis, logistics management is a challenge. How would you explain your overall strategy which ensure that your operational modalities stay as seamless as possible?
We are the only International Car Rental Company in India. We also have been present in India for over 19 Years now. As per international Avis norms all Avis Cars are replaced every 3 years therefore you always get a fresh car when you sit in a Avis Car.
Avis in India has a fleet of around 6,000 premium cars across the country, with a network extending across 50 located rental stations in 20 cities.
How have you grown in the Indian market in the recent years? What kind of scale you have attained?
We are posting a CAGR of 25% for the last few years largely because of the growth of Rent-a-Car in the corporate segment followed by leasing solutions to various companies. Today we are at Rs. 350 crore (in India) with an overall expected growth at 20% over the next few years.
What is your near to medium run growth targets? Will you be launching new products/solutions?
In the next three years we are looking at a turnover of Rs. 600 crore and a fleet of 10,000 cars in the next three years. We also plan to keep offering personalised solutions. In India we also have taken many new tech initiatives which become relevant in today’s scenario when Women’s security is the utmost.
Avis India is seeking more investments in newer range of Vehicles and Technology to fulfil the demand and also expanding its footprints to new geographies in the next couple of months.
We also are today the only car rental company with a GPS based e-Rental Agreement for effectively tracking the entire rental usage including the time and kms run by Avis cars during the course of the rental. An SOS button is present in the Avis mobile application, which if pressed, will trigger an automated response from our 24/7 Avis Secure Helpline.
We are ready to launch The Avis B2B and B2C Mobile application.
The implementation of GST- what kind of bearing it will have on your line of business?
We see only marginal impact in our business.