The car rental and lease company in India Leaseplan announced its plan to invest Rs300 for securing 5000 cars this year. This is double to the one in last year. LeasePlan is a car rental and leasing company of the Netherlands in which VW has 50% share.Started in 1999 the company has been making domestic business and schemes are there to lease buses. It also runs a software called Enterprise Resource through which customers can book cars on internet.
The company’s MD said that the growth in the sector is promising and funding will be through HSBC, ABN-Amro, ING and Indus-Ind banks. The
prospective growth of the industry is 20% and the company expects its own growth to 25% in 2010, despite a fall in last year due to slash in
corporate funding. Leaseplan expects its revenue to cross Rs320crore compared to Rs250crore in 2009 since it has 1000 corporate clients by
which a minimum of 2% profit is assured.
The company is promoting the investment in ERP software, to ease booking and filing of complaints. The company which earns 95% of the revenue from lease market is on the verge of entering the fuel management in India. With the initial tie-up from Bharat Petroleum the customers are issued with smart card. This card enables them to avail fuel at no payment and Leaseplan will pay at a defined period phases. This card is one way helps the customers to check the fuel efficiency.
The operation of Leaseplan in India is in 7 major cities covering 120 towns and cities dealing with Residual value. By this, Lease Plan not only rents out cars but also takes care of maintenance, road assistance, insurance management. LeasePlan has got handful of clients like Coca-Cola, ABN Amro Bank, Godrej Industries, LG and DHL.