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CHENNAI, Jan. 25

CITY Limouzines (India) Ltd, a Mumbai-based car rental service operator and vehicle asset management company, will shortly launch its services here and in Mumbai, according to Syed Mazood, Managing Director.

It plans to rent out cars through membership schemes — Gold Card for an annual payment of Rs 60,000 and a Silver Card for Rs 40,000.

The Gold Card members can rent luxury cars such as Mitsubishi Lancer, Honda and Opel at Rs 750 per 24 hours and unlimited mileage. The usage period is limited to 80 days. A silver card member can hire cars such as a Palio, Qualis, or Indica for Rs 500.

After the launch here and Mumbai in the first phase, it plans to enter other metros. It hopes to induct 15,000 to 20,000 members in the first phase.

This will mean that the fleet strength will have to number at least 30 per cent of the membership, Mazood said.

The company hopes to achieve this fleet strength through the asset management route. A potential car owner has to pay the margin money and insurance and registration cost, while City Limouzines will make up the rest.

The car is on a five-year contract to the company (three years as an introductory offer) after which the owner gets his car back. The owner is likely to get a 3.5 per cent return on investment, he said.

The opportunity is available on payment of a `negligible rent' for 36 months and a `nominal' refundable deposit (interest-free).

Thus, the owner avoids concern such as depreciation, drop in resale value and maintenance cost, according to Mazood.

Article E-Mail :: Comment :: Syndication

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