Sona on diversification drive

Forays into car rentals, leasing and fleet management. The Sona group, a leading automobile components maker, has embarked on its first major diversification drive by providing car rentals, leasing and fleet management services under a new banner, Sona Mobility Services. The group has tied up with SIXT, one of Europe's leading mobility service providers, as the latter's master franchisee in India.

SIXT has a global presence across more than 2,400 service outlets in 76 countries. As the master franchisee for SIXT in India the Sona group will also have the right to develop its own sub-franchisee network. There is, however, no financial tie-up, as of now, between the Sona Group and SIXT.

Though the quantum of investment is not known, the Sona group will be the only financial investor in this new business in India.

Sona Mobility Services, to formally kick off as the official transportation service provider for the AutoExpo 2006 starting in the second week of January, will see the acquisition of 100 cars in the first year of operation.

Sources in the know said fleet would include the taxi segment cars ranging from Tata Indicab to luxury sedans like Mercedes Benz.

The full range of services will cater to the economy section of the value chain and move up as the standard, full size, premium and luxury segments, and also provide utility vehicles for rent or lease.

The immediate plans include acquisitions of models like Tata Indicab, WagonR, Hyundai Santro, Ford Ikon, Opel Corsa, Hyundai Accent, Esteem, Suzuki Baleno, Toyota Corolla, Honda City, Lancer, Honda Accord, Toyota Camry, Mercedes Benz E-Class, GM Tavera and Toyota Innova.

The services will be first available in Delhi and later across the country.

Although the Sona group has, in the recent years, emerged a leading auto components manufacturer, the Kapur family, the main promoter of the group, also has interests in retail jewellery business, under the name 'Kapur di Hatti'.

The car rentals and transportation solutions business in India already has a few global majors like LeasePlan, which is partly owned by the Volkswagen group, Hertz and Avis, besides a host of domestic players.

LeasePlan, which is one of the largest players in India, started operations in India in 1999 and now has a fleet size of more than 8,000 cars, providing a range of services.