New EV Rental and Lease Programs for World’s Largest Market
Hertz (NYSE:HTZ) expands its Global EV initiative to China, making it the first global rental car company to offer electric cars on three continents. Hertz now offers the Nissan LEAF, Chevrolet Volt, Smart ED, Tesla Roadster and other electric cars in U.S. cities including New York, Washington DC, San Francisco and Los Angeles. Hertz is expanding the availability of pure electric cars and plug-in hybrids at airports, downtown hotels, university campuses, condos and co-ops and fleets. Hertz operates in over 8,500 locations in 146 countries.
In London, you can rent the Mitsubishi iMiEV. Mitsubishi will soon start deliveries of the U.S. version of this popular electric city car. In other European cities, Renault electric cars are offered. Now Hertz is expanding into the world’s biggest EV market.
In China, Hertz established a partnership with GE Industrial Solutions China to advance the rollout of EVs and charging stations that includes the co-location of electric vehicles and GE EV Infrastructure as a combined offering. Bundled lease offers of EVs and chargers will make it easy for corporations and government agencies to expand use of electric cars.
“China has committed to rapidly expand electric vehicle travel and Hertz is committed to supporting the ambitious EV Pilot City program,” said Mark Frissora, Hertz Chairman and Chief Executive Officer. “Working with our existing rental car network in China and partners such as GE, we are dedicated to helping build the necessary EV infrastructure in China and to create a new transportation solution that employs the latest technology and harnesses innovations being launched in China today.”
China’s 100 Million EV Owners
Over one hundred million in China ride e-bikes, e-scooters, and light electric vehicles. A growing middle class and major employers are interested in full-function freeway-speed electric cars. In Shanghai, Hertz will be part of the International EV Pilot City, a program to accelerate EV rentals by building out the infrastructure across the Jiading district of Shanghai. Other EV Pilot City partners include auto manufactures, energy suppliers, and insurance companies. Hertz is the first rental car company to sign an agreement to become a partner of the China (Shanghai) International Electric Vehicle Pilot City.
A few weeks ago, Hertz also reached an understanding with BYD for a rental trial of its electric car the e6 in Shenzhen. BYD is years late in bringing its electric cars to the U.S.
The partnership supports the Twelfth Five-Year Plan objective for the promotion of EVs in China and will serve as a foundation for further innovation and development of the infrastructure. The current five-year plan identifies EVs as one of the seven strategic initiatives for China in the next few years and calls for a significant ramp up in both EV charging station deployment and EV manufacturing. The Chinese central government is currently offering 60,000 RMB (about $9,400 USD) rebates for EV purchases and a number of leading cities including Beijing, Shanghai and Shenzhen are offering additional rebates.
“At the Clinton Global Initiative last September, we announced a commitment to provide electric vehicle access on a global scale – an ambitious goal,” commented Frissora. “In less than one year, Hertz is now the leading provider of EV mobility solutions, offering an unparalleled selection of EVs and PHEVs in cities worldwide. We are firmly committed to adding new retail and business to business EV car rental locations internationally as auto manufacturers ramp up EV and PHEV production over the next few years.”
Hertz plans to increase its global EV presence by deploying vehicles in other countries in the coming months. Hertz Global EV will continue to leverage the company’s rental and car sharing locations as bases for vehicles and charging stations, and tap into its technology – including sophisticated fleet management tools to help form an EV grid.
Car Sharing – Hertz On Demand Competes with Zipcar
Some only think of Hertz as a rental car company. Hertz is also aggressively expanding with its car sharing service Hertz On Demand (formerly Connect by Hertz). Competing with Zipcar, Enterprise, and others, Hertz On Demand eliminated membership fees, expanded one way service to 175 locations, guaranteed availability Monday through Thursday in New York City, added electric cars at select locations, simplified the reservation, and enhanced 24/7 in-car assistance. Hertz On Demand has approximately 40,000 members in six countries and on approximately 60 university campuses.
Electric car sales and charging are off to a good start in the United States with drivers who have single family homes with garages to install chargers, but in multi-tenant dwellings costly utility meters must be added, upgraded transformers, EVSE located near meter rooms, new bylaws, and tenant agreement about preferred parking spaces. Shared electric cars charged in shared spaces provide a wonderful multi-tenant solution. Hertz on Demand has Nissan LEAFs available at Seward Park Co-op is one of the largest free market co-ops in Manhattan with more than 1700 apartments, approximately 50 commercial tenants, 13 acres of land and more than 4000 residents.
Hertz is showing smarts and agility with its electric car programs from San Francisco to Shanghai and for everyone from fleet managers, to people living in large apartment buildings, to new university students. If you’re a business traveler, you know what its like to be late to catch a plan and have a corporate requirement to bring back the car with the gas tank fuel. When renting electric cars, there is no added cost with Hertz if you bring back the EV with the battery mostly empty.