Avis has followed rival Hertz into offering satellite radio in rental cars.

Last month, Hertz announced it would offer Sirius satellite radio, initially in California and Florida, and now Avis on Monday said it would offer XM Satellite Radio nationwide from the first quarter of 2003 at an introductory cost of $US2.99 per day.

Avis is adding up to 50,000 General Motors vehicles with factory-installed XM radios to its fleet. Customers can reserve the satellite radio-equipped vehicles in advance or when they arrive at rental locations throughout the country.