Car rental business in Beijing has increased in recent months following the issuance of the new traffic control regulations. Roland Berger, an international consulting firm, projects that revenues from China's car rental market will grow at a compound annual growth rate of 20.2% from RMB 18.2 billion (US $2.8 billion) in 2010 to RMB 38 billion (US $5.9 billion) by 2014.
Mr. Hetong Guo, Founder and Chairman of Lentuo, stated, “We expect our expansion into the vehicle leasing market to boost our sales volume and help offset the effects of Beijing’s new licensing restrictions. We believe that our strong market presence and brand recognition in Beijing will enable us to capture a significant share of this rapidly growing market. This is the first of several new growth initiatives we plan to implement in the months ahead.”
About Lentuo International Inc.
Lentuo is the largest non-state-owned automobile retailer in Beijing, China as measured by new vehicle sales revenue in 2009, according to the China Automobile Dealers Association. Lentuo operates six franchise dealerships, ten automobile showrooms, one automobile repair shop and one car leasing company in Beijing, the largest new passenger vehicle market among all cities in China. Three of Lentuo’s six dealerships are among the leading dealerships in China for their respective brands, as measured by the volume of new vehicle sales by individual dealership.Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “going forward,” “outlook” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.