The company hopes to have 20 per cent of the market, currently worth Bt10.5 billion, within the next three years, Kaewjai Phaoenchoke McDonald, chief executive officer of Europe-Thai Car Rent, said on Friday.

She said the joint venture had been established to provide outstanding service in Thailand using the combined strength of Europcar, which has more than 50 years of experience, and Thai VP Corp, which has been operating for 10 years.

The new company has a fleet of 2,000 cars.

Kaewjai said car rental was becoming more popular in Thailand, with the market enjoying annual growth of more than 10 per cent over the last five years.

In 2006, the market for car rental and leasing is expected to reach Bt10.5 billion, about 13.5 per cent higher than last year.

Kaewjai said foreign investors now had confidence in the Thai economy because of a clearer political direction and a lessening of the potential for conflict, thus paving the way for greater reform.

The interim government, which is composed of capable hands and designated to be in power for one year, should be able to set up a proper framework to propel the economy forward, strengthening the confidence of international investors, she said.

Europcar will deploy a strategy using its global accounts to assist its entry into the Thai market. These include leading business operators such as Nokia, Siemens, Bayer and Accor Hotels.

European tourists and businessmen make up the highest number of foreigners entering Thailand and their number is steadily growing at 12-15 per cent each year.

Foreigners and locals are also relying more on car-rental services due to the benefits in cost control and tax deduction, Kaewjai said.

"Europcar in Thailand will provide a different service for our customers and as a result we believe our market share will meet its target of 20 per cent within the next three years," she added.