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BW Businessworld

Biggest Single Corporate Deal By Mercedes-Benz In India

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Delhi-based Carzonrent, luxury taxi service provider, on Thursday (21 August) said it will add 120 Mercedes-benz to its fleet at a cost of Rs 40 crore. The company plans to invest another Rs 60 crore on purchasing luxury cars this year.

“This is the biggest single corporate deal by Mercedes Benz in India,” said Mercedes Benz India Managing Director & CEO Eberhard Kern after the announcement.

Luxury car markers including Toyota, Audi and Mercedes would be vying to get the deal.

The order placed by Carzonrent comprises 120 C—Class sedans that includes three years maintenance package for the cars, after which the cars are resold in the secondary market by Carzonrent.

Maercedez Benz would be supplying the cars in the next four weeks across Delhi, Mumbai, Bangalore, Hyderabad and Chennai, he added.

Carzonrent MD Rajiv Vij said his company will invest a total of Rs 1,200 crore over the next three years to take its car fleet to 30,000.

At present, Carzonrent has a fleet size of 7,500 cars of which 800 are luxury cars.

Vij claimed that his company earned revenue of Rs 300 crore in the previous financial year and had a target of generating revenues of Rs 450 crore in the current financial year.

Talking about providing an exit route to its three private equity investors- SIDBI Ventures, Sequia Capital and BTS Advisors, Vija said that they are a profit making company and would like to provide a profitable exit to their investors. The three PE investors hold one third of the company’s shares at the moment.