Avis seems to wrapping up the market since Hertz got booted from China for funny management activities. Although many Chinese people seem to be renting out their own cars directly via Taobao.com, an Ebay like website aimed at the Chinese market. Cars, like the Geely Mei Ri (an old Diahatsu Charade) are up for long term rental at 3,000rmb per month. Bargain? We think not.

AVIS Europe Plc said yesterday it will expand its cross-city car rental network to accommodate increased demand during the 2008 Beijing Olympics and the 2010 World Expo in Shanghai.

The news came as the world’s second-largest car rental company opened a new outlet at Shanghai’s Hongqiao International Airport to target the growing number of travelers.

“The opening marks the official launch of services connecting three major airports in Shanghai, Beijing and Guangzhou to nearby satellite cities,” said a statement from Anji Car Rental and Leasing Co Ltd, an equally owned joint venture between Avis Europe and Shanghai Automobile Industrial Sales Co.

China’s rapidly expanding economy and its relatively low number of vehicles per capita have fueled market demand for car rentals.

Avis is currently the biggest overseas rental company in China after Hertz Car Rental Corp quit the market in 2005 as a result of management problems in its licensing operation.

Avis now runs 15 outlets in nine cities through the Chinese joint venture, and another four to five sites will be added in the second half of this year in cities such as Chengdu.

“The broadened network will help us boost the city-to-city car rental business with lower operating costs as there will be no need to ship back the cars after customers return them,” said Zhang Yuan, an Anji communications officer.

The service allows customers to rent in one town and drop off the car in another without being charged a return fee.

“With the approach of the Beijing Olympics and the Shanghai World Expo, the car rental business will take off within three years,” Zhang said.

The company is also holding discussions with the organizers of the two events to offer vehicle delivery services.

Avis originally planned to open 70 outlets in China by 2010, but the plan was postponed when some local governments made access difficult in an apparent attempt to protect domestic firms.

The company has also started talks with domestic partners to open a licensing operation. It earlier predicted that sales revenue in China will reach 240 million yuan (US$30 million) this year.