Chandigarh: Cab service provider Carzonrent on Wednesday said it will invest Rs 150 crore to expand its fleet of vehicles by 2,500 to tap Rs 15,000 crore car rental market in the country.
"We will invest Rs 150 crore this fiscal in our business whereby 2,500 more cars will be purchased to strengthen our operations," company's Managing Director Rajiv Vij told reporters here on Wednesday.
At present, Carzonrent has 6,500 vehicles, comprising a wide range of cars to cater to different types of customers and their requirements.
"We will also be expanding our operations in more cities and plan to operate in 43 cities in next two years," he said.
The company is has operations in 17 cities now, with big cities like Mumbai, Delhi, Bangalore and Chennai adding maximum revenue to the business.
"We have been growing at CAGR of 34 percent for the last 11 years and are eyeing a turnover of Rs 1,000 crore in next three years from total business of Rs 250 crore at present," he added.
Asked about the size of the car rental market, Vij said a total of 4 lakh cars or vehicles are registered as taxis in the country and total market size of car rental is pegged at Rs 15,000 crore, growing at 12-15 percent per annum.
When asked whether the company has seen any impact of the slowdown on business, particularly the corporate sector, Vij replied in the negative.
"We have not seen any impact of slowdown on our business so far. In the first five months our business to corporate grew by 17-18 percent when the business is normally low," he said, adding that his business remained insulated from any adverse impact of slowdown also because of catering to several industrial verticals.
Carzonrent employs 6,000 drivers across the country and provides services to 20,000 travellers per day covering one lakh km daily.
First Published: Wednesday, September 05, 2012, 21:21