New Delhi: The Rs800-crore steering systems and driveline parts manufacturer, Sona Group, today announced its foray into the rent a car, leasing and fleet management business. The group has tied up with SIXT, one of Europe's leading mobility service providers, as its master franchisee for India.

SIXT, Germany's market leader in car rental business and one of the leading vendor neutral and non-bank providers of full-service leasing with estimated total revenue of €2.4 billion Euros in 2005, signed the franchise agreement with Sona Mobility Services New Delhi.

SIXT India will be a part of the Sona Group and will begin operations on 10th of January 2006.

According to Erich Sixt, chairman, managing board, Sixt AG, "The Franchise partnership with Sona Mobility Services for the Indian market follows our international expansion strategy towards the high potential of Asia. We are particularly happy to have found a strong partner like Sona Mobility Services for our business in India and are confident that our customers will soon be able to enjoy a full range of services in India."

SIXT today is represented in 75 countries world-wide and recently expanded its Asian Network by launching its operations in Thailand in 2005.

The company has drawn up ambitious plans for this venture. It will initially invest $15 million and plans to have 500 cars in the rent-a-car segment and 300 in the leasing segment in the first year and aims to capture a 25-per cent market share in the organised rent a car market in the first year of operation and 15 per cent in the lease market in the same year.

The company aims at a fleet growth at 30-40 per cent over two years and as part of its growth strategy, SIXT India, will enter the northern region in 2006-07 and other regions thereafter. The company plans to go in for an IPO in 2008.

Says Dr Surinder Kapur, chairman Sona Group, "India is one of the fastest growing economies in the world. We see a lot of opportunities in the services sector. Sona Group finalised on rent a car business, as the car rental market in India is worth Rs9,000 crore of which 90 per cent of the market is dominated by the semi organised / unorganised sector."

"Sona group manufactures auto component and foraying into a business that deals with automobiles would complement the two businesses," Kapur adds.

As the master franchisee for SIXT in India, the Sona group will also have the right to develop its own sub-franchisee network. The company will leverage upon SIXT's global alliances with hotels and airlines thus giving SIXT India a wider customer base. It will initially be targeting corporates, hotels, and travel houses.

Sixt India has tied up with Airtel and TCS for satellite operations to be able to track the cars on move.

"We hope Sona Mobility services will herald a new era in terms of providing a premium service experience to its customers," says Sunjay J Kapur, CEO SIXT India. "We plan to create alliances and sub franchises in year two in order to completely capture the Indian market. World-wide SIXT focuses a lot on technology in order to provide easy transaction and tracking facilities to
the customers. We are investing a lot into our back-end IT infrastructure to be able to provide our customer the service experience that she / he will expect."

SIXT is the fastest growing rent a car company in the world. With a turnover of $3 billion, Sixt has 2,400 outlets world-wide with a presence in 76 countries.

According to Erich Sixt, chairman, managing board, Sixt AG, "The Franchise partnership with Sona Mobility Services for the Indian market follows our international expansion strategy towards the high potential of Asia. We are particularly happy to have found a strong partner like Sona Mobility Services for our business in India and are confident that our customers will soon be able to enjoy a full range of services in India".

Sona Group comprises Sona Somic Lemforder Components Ltd., Sona Okegawa Precision Forgings Ltd., Mahindra Sona Ltd, Sona e-Design Ltd and Sona Koyo Steering Systems Ltd. which is the flagship company of the group.