American car rental company Hertz Corporation is planning to put up an electric vehicle rental business in China. Hertz will form a partnership with General Electric Energy Industrial Solutions to install charging stations in China, starting in Shanghai, China Daily reported.
G.E. Energy Industrial Solutions general manager Johny Wang said G.E. will work with Hertz to bundle E.V. leasing and charging facilities. Multinationals and government agencies are the initial target markets.
However, Lin Cheng, the deputy director of the National Engineering Laboratory for Electric Vehicles in Beijing, an E.V. technology research and development center, doubts the move.
«This idea is novel, but I doubt whether they can translate it into cash flows,» Mr. Lin said.
«The high price of E.V.s is the major hurdle for Hertz and other car rental companies to roll out rental services to the public. In addition, insufficient charging stations and poles are posing another problem for consumers. If the power runs out in a place without charging facilities, it can be a disaster,» Mr. Lin noted.
Mr. Lin cited one of the electric models Hertz is adopting in China – e6, an all-electric vehicle by BYD Automobile Ltd., a Chinese automobile manufacturer.
He explained that it bundles so many battery sets in the car that it becomes bulky and heavy, leading to high costs and an uncomfortable driving experience, despite BYD’s efforts in providing a spacious interior.
He added that even with rebates from the central and local governments, most E.V.’s are still too expensive for rental companies to buy.
