KUALA LUMPUR, Malaysia, 18 October 2023 – Sime Darby Rent-A-Car (SDRAC) - the exclusive franchise license holder for Hertz in Malaysia - today presented four electric vehicles (EVs) to the Iskandar Puteri City Council (MBIP) for official use.

The handover is the result of a pioneering EV lease agreement inked between SDRAC-Hertz and MBIP during the recent International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) 2023. Also present at the signing ceremony was Puan Elina binti Jani, CEO of Greentech Malaysia Alliance (GTMA) as a witness of the event.

The lease agreement with MBIP is one of two green mobility initiatives by SDRAC-Hertz aimed at bolstering the adoption of EVs within the car rental space.

The second green mobility initiative by SDRAC-Hertz is the extension of the company’s role as the official EV rental partner of IGEM until 2030.

“These two strategic partnerships reflect our commitment to sustainable transportation solutions, perfectly complementing the Sime Darby Group’s ESG target of having more than 50 percent energy-efficient products in its portfolio by 2025,” said Nahar Hakimy, Chief Operating Officer, Sime Darby Rent-A-Car–Hertz Malaysia.

“We have taken strides towards reducing our carbon footprint by incorporating a growing fleet of electric vehicles into our offerings. Beyond fleet choices, we have also integrated digitalisation and sustainability features into our operations,” he added.

A first in EV leasing and fleet management

The agreement between SDRAC-Hertz and MBIP marks a new milestone for both organisations. Under this historic deal, Hertz, facilitated by SDRAC, will lease four electric vehicles to MBIP for one year starting October 2023.

Notably, this agreement makes Hertz the first car rental company in Malaysia to provide EV leasing services to a city council. MBIP, in turn, becomes the first city council in the country to leverage the benefits of EV leasing for its operational fleet.

Mayor Dato’ Haji Mohd Haffiz bin Haji Ahmad said the leasing of the four EVs and partnership with SDRAC-Hertz is just the beginning.

“We will continue to increase the number of EVs as part of our ongoing effort to reduce carbon footprint in Iskandar Puteri.

“Cultivating green mobility, embracing sustainability and electrifying our future with electric vehicles isn’t just a choice; it’s our commitment to a cleaner, greener and more vibrant city and nation, in line with the government’s Low Carbon Mobility Blueprint,” he said.

At the handover ceremony in Iskandar Puteri, Johor, the leased EVs were presented to Housing and Local Government Exco Datuk Mohd Jafni Md Shukor. SDRAC-Hertz was represented by Chief Operating Officer Nahar Hakimy, while MBIP was represented by Mayor Dato’ Haji Mohd Haffiz bin Haji Ahmad and Chief Whip Datuk Abd. Rashid Kasman.

As a testament to the growing appeal of EVs, Datuk Mohd Jafni Md Shukor also took the opportunity to test drive one of the electric vehicles.

Out of the four EVs leased, one is a Hyundai Ioniq 5 Plus, which will be used by Iskandar Puteri mayor Dato’ Haji Mohd Haffiz bin Haji Ahmad as his official vehicle. The remaining vehicles – three units of Hyundai Kona E-Max – will be assigned to council enforcers to execute their daily duties.

The leasing agreement comes complete with a comprehensive package, including unlimited mileage, replacement car availability, coverage for maintenance, wear and tear, insurance, road tax, and 24/7 roadside assistance support.

To ensure a seamless experience for MBIP, SDRAC-Hertz also shoulders the responsibility of fleet maintenance for the leased vehicles. This proactive approach ensures that the city council can fulfil its operational duties in managing the Iskandar Puteri township with minimal disruption and downtime.

Exclusive EV Rental Partner for IGEM 2023 to 2030

SDRAC-Hertz has also reinforced its commitment to eco-friendly initiatives by extending its role as the official EV rental partner for IGEM until 2030. This strategic partnership underscores SDRAC’s dedication to fostering sustainable practices and promoting green mobility solutions.

As the designated EV rental partner for IGEM, SDRAC-Hertz will provide attendees with unfettered access to its fleet of electric vehicles, making environmentally responsible transportation options readily available.

The collaboration between IGEM and SDRAC-Hertz marks another long-term partnership aligning with IGEM's overarching mission of Race Towards Net Zero. SDRAC-Hertz is undeniably leading the charge in prioritizing environmentally friendly transportation, positioning itself as a prominent industry leader dedicated to climate action. We hope that this collaboration would spur more public-private sector partnerships to propel Malaysia's Net Zero transition pathways," said Elina binti Jani, CEO of GreenTech Malaysia Alliances (GTMA).