Hertz UAEHertz UAE is planning to near triple its fleet to 20,000 vehicles from the current 8,000 in the next three years, a senior company executive said. "With a current combined fleet of 8,000 vehicles, I would like to see the fleet reach the 20,000-mark over the next three years," Nigel Johnson, general manager, Hertz UAEHertz UAE, a division of Al-Futtaim Sons, told The Business Weekly.

The car rental company, which is forging ahead with a Dh60 million expansion of its car rental and leasing operation this year, says that its policy of buying new vehicles is based on the holding cost. "Primarily we have to look at the costs of supplying vehicles which is driven by the holding cost. We have to see how much it costs us to buy, to run and what we get back when we finally sell it," he said.

According to our research, we have found out again that Toyota, Honda and Nissan vehicles are in great demand as it has a very strong resale value in the market. "And if you look at our fleet, we predominantly have these brands comprising the biggest chunk. Our customers want good value for their money and are happy when we are able to provide them with these brands. In fact, our fleet portfolio is actually driven by what our customers demand," he said.

Different strategy
Johnson was recently relocated to Dubai from the UK to take charge of the ongoing expansion of the HertzHertz fleet of vehicles and network of branches across the UAE. He previously worked in the fleet operation division of UK-based automotive solutions provider, Inchcape.

He told The Business Weekly that HertzHertz is different from other rental companies as it operates a different strategy. "For the company, quality is the most important thing and that is why as a policy we will run our vehicles for 11 months only. After 11 months, we send the vehicle to the used cars market and replace it with a new one. This is because by the time 11 months is completed, the vehicle has run close to 20,000 kilometres. Also, we want our customers enjoy the experience of running the new car as part of our customer service initiative," he added.

"At HertzHertz, we are looking at the customer experience and the customers are conscious and seek a high level of quality in what he wants. "In our business, the customer is the king and from my perspective, I am happy to manage the business proposition according to what the customers are looking forward to. We are looking at the top end of the quality," Johnson added.

Hertz UAEHertz UAE, which operates 14 branches in the UAE, has opened four new branches this year at Dubai Marina, Dubai Festival City, Sheikh Zayed Road and Terminal 3 at Dubai International Airport, as well as two full-service mega-sites. The new sites at Dubai Investment Park and Mussafah in Abu Dhabi will include parking for 500 vehicles.

By Vinod Kumar PK

© The Business Weekly 2008