Hertz, the world’s largest rental car company, is going electric. The company plans to have 25% of its 500,000 vehicle fleet be electric by the end of 2024, up from 10 percent now.

Hertz has already made deals to buy 330,000 electric vehicles from Tesla, Polestar, and General Motors. The first GM vehicles are beginning to arrive now, and Hertz CEO Stephen Scherr said on the company’s earnings call that the company is forecasting nearly 2 million EV rentals in 2023, approximately 5 times the number of last year.

Recent price declines in the market have helped Hertz with its buying spree. Tesla started a war for market share in a softer economy, and prices have since come back up, but the rental car company was able to take advantage of the lower prices.

“I think the drop in price on EVs is an encouraging proposition for us in that if I’m 10% moving to 25%, and I’ll get higher from there, I’m obviously a happier and a better buyer at a lower price point than not,” Scherr said.

Hertz’s move to electric vehicles is a major step forward for the rental car industry. As more and more people switch to electric vehicles, rental car companies will need to follow suit in order to stay competitive.

Hertz’s move to electric vehicles is also a positive step for the environment. Electric vehicles produce zero emissions, which can help to reduce air pollution and climate change.

Hertz’s move to electric vehicles is a win-win for the company, its customers, and the environment.

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