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GO Rentals' managing director James Dalglish said the company was continually looking at expansion opportunities across the country.
A GO Rentals spokesperson said the company was taking over Jucy's existing operation, and its focus for the next two months was to meet the needs of existing customers and maintaining bookings.
Mr Dalglish highlighted Otago's economy had continued to grow year-on-year, and both tourism numbers and Dunedin's population were on the rise.
"Not only is it a beautiful region with so much to offer including its beautiful architecture and unique wildlife, but business-wise it also makes real sense for us,'' he said.
Ahead of peak season later in the year, GO Rentals intends to increase its Dunedin fleet size by up to 75%, and increase job numbers at the branch by at least 50%.
GO Rentals has a travellers' mobile app to customise experiences, discount partnerships with hundreds of tourism operators across the country, and vehicle accessories including roof racks and snow chains.
The new Dunedin Airport branch joins those in Queenstown, Auckland Airport and CBD, Wellington and Christchurch.