autoevolution
 

EVs Are a Hit With Rental Companies, Hertz Sees "Very, Very Solid" Demand From Customers

Fleet buyers are just starting to see the economic benefits of switching to electric vehicles. If Hertz’s experience is anything to go by, the internal combustion engine is doomed long before the expected phase-out period around the 2040s.
Hertz sees “very, very solid” EV demand from customers 7 photos
Photo: Hertz
Tom Brady Will Help Hertz Rent the 100,000 Teslas It Has BoughtTom Brady Will Help Hertz Rent the 100,000 Teslas It Has BoughtTom Brady Will Help Hertz Rent the 100,000 Teslas It Has BoughtPolestar begins Polestar 2 fleet delivery to HertzPolestar begins Polestar 2 fleet delivery to HertzPolestar begins Polestar 2 fleet delivery to Hertz
Hertz is one of the major car rental companies that started introducing electric vehicles in its fleet long before they were cool. Yes, they had smart EV and Nissan Leaf in their fleet. Still, Hertz really made the news last year when they announced a billion-dollar investment plan to acquire 100,000 Tesla electric vehicles. Although it was considered just a bluff, the deal soon turned into a bigger trend that could spurn a new EV revolution in itself.

Since then, Hertz has extended its reach in the electric-vehicle market and signed contracts with more EV makers. After Tesla, it was Polestar, which is expected to add 65,000 Polestar 2 to Hertz’s fleet over the next five years. And because the rental car company’s requirements are hard to quench by these two EV makers alone, General Motors was also included in this select club. GM will sell no less than 175,000 EVs to Hertz in the next five years, with Chevrolet, Buick, Cadillac, GMC, and BrightDrop models joining the fleet.

“Demand has been very, very solid,” Hertz CEO Stephen Scherr said in an exclusive Yahoo Finance Live interview Tuesday. “We’re seeing demand not just among leisure travelers but also among corporate travelers, where in fact corporations want their employees in an electric vehicle to satisfy some of their own carbon footprint objectives.”

The company aims to have 25% of its fleet electric by the end of 2024. With the new deals still taking time to move the needle, only 5% of Hertz’s fleet is made of electric vehicles at the moment. Hertz plans to invest in thousands of charging stations nationwide by the end of next year to ease the transition. A deal was signed with the oil giant BP to build fast charging stations, and Hertz is on the hunt for more similar deals.

“One of the real issues why engaging with BP is an important step is that not only are they going to build out charging stations — mostly fast chargers on our facilities — but we are going to use their energy management tools and software to sort of overcome range anxiety,” Scherr said.

The big electrification is still slow to gain traction with rental companies, but surely, the big players in the industry are closely monitoring Hertz’s operations. Maintenance is 40-50% less on an electric vehicle, a big incentive to dump ICE cars from the fleet. We’re talking big players with hundreds of thousands of vehicles in their fleets, where every saved dollar counts.

And the push will come from both directions, not just the bean counters. Customers want to drive electric vehicles because they are cool and can save money. EV rentals are also an excellent opportunity for them to try an electric car without committing to the purchase.

If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories