- To yet, the leading companies in the rental car market have not made significant pledges to include electric vehicles in their fleets.
- The Hertz-Tesla partnership will put pressure on competitors like Avis Budget Group and Enterprise Holdings to take EV adoption more seriously.
- Enterprise tells reporters that it plans to transform its fleet “over the coming years,” but that the “emphasis is not on just adding numbers,” and that range anxiety and the lack of public charging are still big consumer concerns, according to the company research.
Electric Vehicle Industry and the Deal
According to Northcoast Research analyst John Healy, government scrutiny of rental car emissions will continue to expand, as will customer interest in EVs. The rental car industry’s fundamentals give companies like Avis Budget Group and Enterprise Holdings various reasons to take their time with electric vehicle adoption.
Consider how much money they gain when a renter fails to return a car with a full tank of petrol. However, on Monday, the rental car industry received the most compelling reason yet to make the switch to electric vehicles in their fleets. The deal between Tesla and Hertz for 100,000 vehicles is a sign to the key car rental companies that there is a need for a strategy for EVs and maybe soon they should plan on it.
Hertz is the first of the tiny group of large rental vehicle firms to make a big stake in EVs, according to auto industry analyst John Healy of Northcoast Research.
Following a period of market consolidation, the three businesses now account for as much as 95% of automobile rental agencies at airport terminals:
- Enterprise owns National and Alamo;
- Hertz owns Thrifty and Dollar;
- Avis united with Budget
But it’s only Hertz that offered EVs in any remarkable way to date. Its emphasis and focus are restricted to the niche market of luxury renters who use its premium services like Ultimate Choice.
Tesla Rentals and Energy Transition
In an emailed response to reporters, an Enterprise Holdings representative stated, “Our focus is not on merely adding numbers, but on working intelligently with industry partners and stakeholders to drive the long-term viability of EVs.” “This involves ensuring that the grid and charging infrastructure are in good working order.”
She also mentioned that the corporation began collaborating with a prominent European consulting firm this year. The goal of the project was to figure out how it might improve its business model, operations, and infrastructure to accommodate more electric vehicles.