Chinese investment company Legend Holdings has announced that it will be taking a majority share in car rental giants China Auto Rental. At a recent press conference Legend Holdings confirmed that it would be injecting 1.2 billion yuan and providing additional finance to assist the growth of the company.
China Auto Rental is a nationwide service provider with outlets in 41 cities. It has a customer base of more than half-a-million individuals and a fleet of around 6,000 vehicles. This is the first time Legend Holdings has moved into the service industry, traditionally being linked with real estate and IT investments.
Legend Holdings’ executive vice president, Zhu Linan, said the ultimate goal was to make China Auto Rental the company’s core asset. He added that within the next five to seven years Legend hoped to be a major listed investment company and the acquisition of China Auto Rental was the first step to achieving this.
Zhu predicts that the size of the car rental market in China will grow to around 38 billion yuan over the next few years and that by 2014 there will be an estimated 400,000 vehicles available to customers across the country.
Zhu added that in large cities such as Shenzhen, Guangzhou, Shanghai and Beijing China Auto Rental already had the upper hand over its competitors and this is why now is the ideal time for Legend Holdings to move into the vehicle rental market through the acquisition of such a dominant force.
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