This week, the world’s largest car rental firm, Enterprise Rent-A-Car, has announced further details of their expansion.
Venturing into the Vietnam market, Enterprise Holdings makes its first move into Asia. The brand already boasts 85 locations in Europe and America.
Wanting to dominate the Asian car rental market, Enterprise Rent-A-Car will be working through their Vietnamese franchise partner, MP Logistics, offering a catalogue of cars and vans across the whole of the Asia Pacific region.
At present, there are just 300 Enterprise rental cars in operation in Asia, ranging from small, 5-seater vehicles to larger motors with a capacity of 47. While only available in Ho Chi Minh City, the plan is to open bases across the region, with Hanoi and central Da Nang City being areas of focus for the beginning of 2019.
The brand will initially be working on building a corporate customer base of employers with operations in Vietnam. This will allow Enterprise to create long-term leasing partnerships. Once succeeded in that area, Enterprise will move towards short-term rental with chauffeurs as well as self-drive options.
Turning a profit
But, when it comes to turning a profit, Enterprise Rent-A-Car know that they have a great deal of work on their hands.
“The price of buying a car in Vietnam is twice that in the U.S., but the rental price is the same in both markets, so the business risk will be higher” they said.
Todd Prister, regional director for the Enterprise Franchise Asia-Pacific, is excited to see what the future holds for this venture.
“Vietnam not only has one of the highest growth rates in the world as well as attractive business markets, but also is a prominent destination in Southeast Asia. Combining these factors, Vietnam will be a brilliant opportunity for us” he said.
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