The ongoing economic downturn that has stunted rental car sales in Europe has led to Avis Europe Plc announcing a new move in the Chinese car hire market.

The second largest hire car organisation in Europe, Avis Europe has launched the new initiative to capitalise on the hugely potential Chinese market as the local industry remains stagnant. The new move will see the group quadruple the number of rental outlets across the Chinese mainland.

Avis Europe already operates 26 Chinese rental stations through its partnership with the Shanghai Automotive Industry Corp, but the latest deal will see this number rise to well over 100 outlets in the next two years. This means that Avis will be in pole position to corner the car rental market in the Asian superpower if and when it takes off. The group already operates 46 percent of the hire car outlets managed by international companies in China, where the rental market to date is very small.

Martyn Smith, Avis Europe’s Finance Director, has acknowledged that his outfit is targeting the main Chinese cities but also looking at destinations further afield. The sheer size and scale of the country has many rental operators salivating at the prospect of a driving public, but wary of the traditional barriers to expansion in the region. The Chinese economy is predicted to expand by 9 percent this year according to the World Bank, dwarfing predictions for Europe which remain below 1 percent.