Sona Group forays into the rent-a- car business

09 January 2006

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.